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. (NASDAQ:TSLA) and Nvidia Corp.‘s (NASDAQ:NVDA) share prices have surged by 45.35% and 42.33%, respectively, since April 7.

Whereas, SPDR S&P 500 ETF Trust (NYSE: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. (NASDAQ:AAPL), Alphabet Inc. (NASDAQ: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 (NASDAQ: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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