Earnings Season May Bring Changes

Earnings growth, a driver of long-term stock market performance, seems to be expanding beyond a handful of U.S. equities, supporting more broad-based market performance.

The surge in the so-called "Magnificent Seven" or Mag7 stocks (Alphabet, Amazon, Apple, Meta, Microsoft, NVIDIA, and Tesla) accounted for the catch up in performance of U.S. stocks relative to international stocks since the current bull market began. But now the performance of these Mag7 stocks may be waning, leaving international stocks unchallenged as the leaders this market cycle.

Performance since current bull market began on October 12, 2022

Performance since current bull market began on Oct. 12 2002

Source: Charles Schwab, Macrobond, S&P Global, MSCI as of 4/5/2024.

Past performance is no guarantee of future results. All corporate names and market data shown above are for illustrative purposes only and are not a recommendation, offer to sell, or a solicitation of an offer to buy any security. Supporting documentation for any claims or statistical information is available upon request. Indexes are unmanaged, do not incur management fees, costs and expenses and cannot be invested in directly.