Tech stocks were battered in July as the AI trade stalled amid increasing concerns over valuations, capital expenditure (CapEx), and mixed earnings results. But that short-term weakness in tech exposed underlying strength in other corners of the market.
In the second half of 2026, earnings growth for companies outside the Magnificent Seven is forecast to narrow the gap and outpace the group in Q4, with that broader earnings participation becoming a defining feature of the next phase of the bull market.
