S&P 500: Beyond Tech, New Profit Stars Emerge

S&P 500 sectors beyond tech are showing signs of profit improvement, indicating opportunities for investors to diversify away from the expensive tech industry. The index has nearly exited its profit recession, with EPS growth for the Magnificent Seven heavyweights rising to 49%.
Despite the strong performance of tech megacaps in the earnings season, the S&P 500 ex-Mag 7 is also expected to see better days ahead, with a projected 7% rise in second-quarter EPS. Sectors like industrials, financials, and utilities are now among the top performers in terms of profit growth.
While tech-heavy names still lead in absolute profit growth, sectors like energy and materials have seen significant upside changes in their profit outlook. Info tech has been revised lower, while energy has experienced the biggest positive change.