The Magnificent 7 Trade Is “Likely Over,” Piper Sandler Warns.
Here Are the 2 Sectors Taking Its Place Quick Read – Microsoft short interest sits at an 11-year high while NVDA gained just 6% year to date despite posting 85% revenue growth. – QQQ dropped 5% in a week while Health Care and Financials posted outsized gains, validating Piper Sandler’s rotation out of tech since February. – Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn’t make the cut
Grab the names FREE today. On CNBC’s Morning Call Sheet roundtable on July 29, Piper Sandler chief market technician Craig Johnson made a firm call against the Magnificent 7 and explained why he instead prefers the Health Care and Financial sectors today. “The Mag-7 trade [has] been very long in the tooth for a while, and it’s likely over, and you’re seeing a reset happening,” Johnson said. “It’s just not about the Mag-7. It’s just not about the semiconductor stocks.
And it’s a market that’s rotating into other parts of the market. We’re seeing clear pickups in Health Care. We’re seeing pickups in Financials.” The Numbers Show Market Leadership Is Already Broadening The Invesco QQQ Trust (NASDAQ:QQQ), one of the easiest ways to get a read on the tech industry as well as the Mag-7, is up 9.96% year to date through July 28, 2026, but it has fallen 4.72% over the past week and 4.39% over the past month.