Mosaic Finance
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Magnificent 7 vs. Equal-Weight S&P 500 leadership & rotation intensity
Relative Performance= cumulative total return of an equal-weight Mag7 basket divided by the cumulative return of RSP (Invesco S&P 500 Equal Weight ETF), indexed to 100 at the start of the lookback period. Values above 100 mean Mag7 is outperforming.
Rotation Intensity Z-Score = rolling 63-day z-score of the daily return spread (Mag7 − RSP). Positive z-scores mean Mag7 is outperforming faster than its recent average; negative z-scores mean the broad market is catching up.
Key levels: Z-scores beyond ±2 (orange dashed lines) indicate extreme rotation intensity. Factor momentum research shows these trends persist for 2-6 months.
The "Magnificent 7" (Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta, Tesla) have dominated S&P 500 returns in recent years. This page tracks whether these mega-cap tech stocks are leading or lagging the rest of the market. When leadership rotates away from the Mag7 to the broader market, it often signals a healthier, more broad-based rally. When the Mag7 leads by a wide margin, the market may be more fragile since gains are concentrated in just a few names.