Big Tech drag pulls S&P 500 down 4.6% in Q1
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- S&P 500 fell 4.6% in the first quarter of 2026, marking its worst quarterly performance since 2022, as high oil prices linked to the Iran conflict weighed on the market.
- Magnificent Seven (Nvidia, Apple, Alphabet, Microsoft, Amazon, Meta, Tesla) plus Broadcom together comprised more than 40% of the S&P 500’s weighting, and their underperformance dragged the index lower.
- Trivariate Research reported that 238 S&P 500 stocks (48%) rose in Q1 and 57% of the index beat the market benchmark, showing broad breadth despite the overall decline.
- Invesco S&P 500 Equal Weight ETF (RSP) posted a modest 0.2% gain for the quarter, outpacing the cap‑weighted S&P 500’s fall.
- Roundhill Magnificent Seven ETF (MAGS) surged 5.1% in the week ending April 3, beating the S&P 500’s 3.4% weekly rise.
- U.S. stock market closed higher on Good Friday, with the S&P 500 up 0.1% for the day but still down 3.8% year‑to‑date.
Why it matters: Investors tied to the cap‑weighted S&P 500 suffer as the over‑reliance on the Magnificent Seven amplifies losses, while those holding equal‑weight or sector‑diversified ETFs capture the underlying breadth and mitigate the downturn. The data shows that index weighting, not just stock performance, drives returns.
Ask SkimNews
