Big Tech’s $16T Earnings Week Tests Rally’s Staying Power

Big Tech’s Magnificent Seven, valued at nearly $16 trillion and driving a 13% four-week S&P 500 rally, face a pivotal earnings week that could extend gains or spark a pullback. Q1 results are projected to grow 19% versus 12% for the rest of the index, but investors eye AI/cloud revenue beats amid $649 billion combined 2026 capex for Microsoft, Alphabet, Amazon, and Meta—up from $411 billion last year. Risks include weak free cash flow like Amazon’s expected -$13.3 billion and geopolitical tensions from the Iran war, framing this as make-or-break per latest analysis.