Despite a market rebalancing away from large tech companies, reflected by an over 10% correction in the Roundhill Magnificent Seven ETF (NASDAQ:MAGS) in the past two weeks, the so-called "Magnificent Seven" companies still comprise an outsized portion of the S&P 500.

The Data: The Magnificent 7 comprises seven of the largest U.S. technology companies weighted heavily in the SPDR S&P 500 ETF Trust (NYSE:SPY).

• Apple Inc (NASDAQ:AAPL), 6.93% of the index.
• Microsoft Corp (NASDAQ:MSFT), 6.66% of the index.
• NVIDIA Corp (NASDAQ:NVDA), 5.95% of the index.
• Alphabet Inc (NASDAQ:G) (NASDAQ:GOOGL), 4.45% of the index.
• Amazon.com Inc (NASDAQ:AMZN), 3.94% of the index.
• Meta Platforms Inc (NASDAQ:META), 2.45% of the index.
• Tesla Inc (NASDAQ:TSLA), 1.4% of the index.
  (Figures taken at the time of writing)

All components have been in the red over the past 10 market sessions at a higher magnitude than the nearly 3% drop seen in the overall S&P 500. The small-cap Russell 2000 index is up nearly 10% in that period.

Still, the Magnificent 7 collectively comprise around 32% of the S&P 500.

Why it Matters: The data reflects a persistent market bullishness in artificial intelligence and Big Tech.

The current correction has lessened Magnificent 7's year-to-date performance to a degree, but the Roundhill ETF, which tracks the seven companies, is still up over 35% in 2024.

Several experts have predicted a larger market correction, describing the valuations of NVIDIA and other heavily weighted stocks as "bubble-ish."

Also Read:

• Mortgage Rates Hit Lowest Point Since February As Investors Anticipate Fed Rate Cuts

Photo: Shutterstock