Analysis-Megacap stocks keep lifting US market, but worries over their dominance grow

Earnings reports this week from five of the so-called Magnificent Seven stocks are putting a renewed focus on risks from the group’s outsize weighting in the S&P 500, while their collective strength continues pushing U.S. equities to record highs. Analysts at JPMorgan said on Tuesday the market’s narrow leadership was becoming “increasingly unhealthy,” with the Magnificent Seven — Alphabet, Amazon.com, Apple, Meta, Microsoft, Nvidia and Tesla — accounting for nearly 29% of the S&P 500. Of the Magnificent Seven, only Apple and Microsoft are part of the Dow Jones.