Big Tech’s $4 Trillion Boomerang Powers S&P 500 to New Heights

Big Tech’s rebound has driven the S&P 500 to fresh record highs, with seven large technology companies contributing a concentrated portion of the advance. Since the S&P 500 trough on March 30, an index tracking the Magnificent Seven has rallied about 20%, adding roughly $4 trillion in market value in weeks. The move is more a positioning and catch‑up trade than a fundamentals shift: earnings growth for the big cohort is expected to remain stronger than the broader index, valuations have fallen (Magnificent Seven ≈ 24x vs S&P ≈ 21x), and investors are increasingly viewing hyperscalers’ AI spending as potentially payoff‑worthy. Risks from Middle East tensions and heavy AI capex remain, but strategists see further upside — Wells Fargo projects the S&P 500 could reach 7,300 by summer. Overall the piece frames a bullish market-impact narrative driven by a narrow tech rally rather than broad fundamentals.