Magnificent 7 Drive 54% Of Market Cap Gains In S&P 500 Since April Lows: 'The Market Cannot Survive Without Big Tech'

As the market recovers from April lows, the heavyweights are back in action after a brief respite, with the Magnificent 7 stocks leading nearly 55% of the S&P 500’s market capitalization recovery.

What Happened: “The Magnificent 7 alone have accounted for nearly 55% of the total market cap gains since April 7th,” highlighted Otavio Costa, a macro strategist at Crescat Capital, in an X post.

Resharing Costa’s post, the Kobeissi Letter quoted that “The market cannot survive without Big Tech.”

Out of the S&P 500’s $7.5 trillion market cap gain since April 7, nearly $4 trillion was added by the Magnificent 7 stocks.

“This means the Magnificent 7 has contributed ~9.1 percentage points to the 16.8% return of the S&P 500 during this period,” said Kobeissi in its X post.

According to Benzinga Pro, Tesla Inc. TSLA and Nvidia Corp.‘s NVDA share prices have surged by 45.35% and 42.33%, respectively, since April 7.

Whereas, SPDR S&P 500 ETF Trust SPY, tracking the S&P 500 index, rose 18.15% during the same period.

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Why It Matters: The Magnificent 7 stocks have had a tough year in 2025, but a few of them have recovered on a year-to-date basis.

Apple Inc. AAPL, Alphabet Inc. GOOG, and Tesla were still down in double digits for 2025.

During the first quarter, these seven companies reported an earnings growth of 27.7%, which was above the estimate of 16% as per the FactSet data.

Price Action: The SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, ended on a mixed note on Wednesday. The SPY was down 0.027% at $595.93, while the QQQ advanced 0.28% to $528.77, according to Benzinga Pro data.

The futures of the S&P 500, Nasdaq 100 and Dow Jones were lower on Thursday.

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