Magnificent Seven Breaks Apart as Group Momentum Unwinds

The Magnificent Seven tech stocks ceased trading as a unified factor in late June 2026, with most now lagging the S&P 500. This fragmentation matters because passive flows that sustained the group's momentum are reversing. Managers face a stock-picking problem in names priced for macro thesis, not individual fundamentals. Meta's AI advertising gains differ sharply from Apple's feature-level integration and Nvidia's leverage to the capex cycle—differentiation the market is now pricing.