It's largely been a bull market over the last decade, which helps explain why this group of growth stocks has been so successful. From 2016 through 2025:
- The Magnificent Seven delivered higher returns than the S&P 500 in eight out of 10 years.
- The biggest difference was in 2020, when the Magnificent Seven had an annual return more than four times higher than the S&P 500 (65.8% to 16.3%).
- The only year in which the S&P 500 performed notably better was 2022, when it declined 19.4%, while the Magnificent Seven fell 41.3%. The S&P 500 also had a slight edge in 2016 (9.5% to 8.8%).
Because it's more diversified and not reliant on a single sector, the S&P 500 tends to weather stock market volatility better. The Magnificent Seven generally aren't as resilient during periods of economic uncertainty, as evidenced by their greater losses during down markets, most notably in 2022, and also during the recent tech sector sell-off.
Magnificent Seven vs. S&P 500 in 2026
The stock market has had a turbulent year so far, with the S&P 500 down 1.9% through March 17, 2026. The Magnificent Seven have declined even more, as they've collectively lost 5.9%. All seven are in the negative, with Microsoft (down 17.4%) and Tesla (down 11.3%) faring the worst.
In years past, the Magnificent Seven drove most of the S&P 500's growth. In 2026, they've been weighing it down compared to "the other 493," a term for all the other companies in the S&P 500 index.
