The earnings growth of the seven major US stocks slowed down, and the rise of the S&P 500 index was threatened

The seven largest companies in the U.S. have boosted earnings growth and stock returns for the S&P 500, accounting for about a third of the benchmark index. More than half of the index's gains over the past two years have come from these companies, but their profit growth is slowing as spending grows. In terms of forward price-to-earnings ratios, the Big Seven are 40% premium to the S&P 500 as a whole, so these concerns pose a threat to their high valuations. This premium level is already narrowing, below the peak of 70% in 2023. Industry research data shows that the year-on-year growth rate of earnings of these giants peaked at the end of 2023 and is expected to slow for the fifth consecutive quarter. Kristian Heugh, manager of the Morgan Stanley Global Opportunities Fund, said the year-on-year growth in earnings of the Big Seven is "substantially" declining, while other components of the S&P 500 are improving. (Jinshi)