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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
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Sign InAmid a market rally driven by a narrow group of leaders, Apollo Global Management's chief economist highlighted that the margin stall in the S&P 493 companies poses a significant risk to the continued rally of Big Tech stocks. According to reports, this divergence between the 'Magnificent Seven' and the rest of the S&P 500 creates a fragile market structure dependent on a handful of valuations. The analysis suggests that the lack of fundamental margin improvement in the broader market could eventually exert downward pressure on even the strongest tech performers.
This warning comes as historical data shows a widening gap; while Big Tech profit margins hit record highs, the remaining sectors struggled with elevated borrowing costs. In comparison to industry peers, Blackstone recently reported growth in assets under management, reflecting a shift toward alternative investments outside traditional public equities per market data. Recent earnings reports further confirm that S&P 500 earnings-per-share growth remains heavily concentrated, with tech contributing over 25% of the total index growth.
Regarding market performance, APO shares stood at $122.17 (at close July 06, 2026), having traded between a day low of $118.9 and a high of $123.02. Investors are closely monitoring upcoming economic indicators to gauge the health of non-tech sectors, particularly following the ISM Manufacturing PMI release on July 1st which printed at 53.3, signaling a slight expansion that could potentially support broader margin recovery if sustained.