"Expanding Beyond the Magnificent Seven: S&P's Path to Higher Gains"

The recent losses in the S&P 500 could be healthy for the overall index, according to some Wall Street strategists. The dominance of the "Magnificent Seven" stocks, which have driven much of the index's gains this year, has led to concerns about market breadth. Market breadth refers to gains being distributed across companies rather than concentrated in a few names. The strategists believe that for the market to be stronger, the rest of the 493 companies in the index need to participate in the gains. While some believe a cyclical trade will eventually lead the market higher, there is disagreement about when this will happen.