Magnificent Seven Lose Momentum as AI Spending Spreads

The Magnificent Seven powered much of the market’s gains over the last several years, but this year’s rally is being driven by a broader group of companies tied to the AI infrastructure boom.

Paul Lane and Marc Fandetti break down why the biggest tech stocks have lost some of their market leadership, how companies like Micron and other chip suppliers are now carrying more of the AI trade, and why investors are watching to see whether major tech firms will keep spending aggressively on data centers and computing power. They also discuss rising inflation expectations, why Kevin Warsh’s credibility matters for the Federal Reserve, how elevated valuations could leave markets vulnerable, what the K-shaped economy says about consumer spending, and why robotaxis still face a difficult path to broader adoption.