Big Tech still beats the S&P 500, but each rally is weaker, DataTrek says

DataTrek says U.S. Big Tech continues to outperform the S&P 500, but the strength of each rally has become less powerful over time. Since 2015, the ‘Mag 7 + AVGO’ basket has beaten the S&P 500 by an average of 30.5 percentage points over rolling one-year periods, highlighting the persistent leadership of large-cap tech. The article’s market takeaway is that tech remains the dominant driver of index performance, but momentum may be maturing as relative outperformance becomes weaker with each new rally. This suggests the S&P 500’s broader gains still depend heavily on a narrow group of megacap technology names, while investors should watch for signs that leadership is narrowing or losing intensity.