NEW YORK – To beat the market in recent years, many investors applied a simple strategy: Load up on the biggest US technology stocks. 

It paid handsomely for a long time. But in 2025, it didn’t. For the first time since 2022, when the Federal Reserve started raising interest rates, the majority of the Magnificent 7 tech giants performed worse than the S&P 500 Index. While the Bloomberg Magnificent 7 Index rose 25 per cent in 2025, compared with 16 per cent for the S&P 500, that was only because of the enormous gains by Alphabet and Nvidia.