Without the Magnificent 6, S&P 500 earnings growth in Q4 would be a lot lower.
According to Factset, without the “Magnificent Six,” which are projected to have grown 54%, earnings growth for the S&P 500 would have been -10% (Chart).
Underwhelming earnings growth for a large swath of the equity market explains the recent pick-up in layoffs, as companies fight to defend their margins. This aligns with the analysis of the interplay of