The profit growth of the Tech Seven Giants may lag behind the rest of the S&P 500 components for the first time since Q4 2022.

Market analyst John Butters stated that so far in the third quarter, five out of the "Magnificent Seven" technology companies have reported earnings per share growth that lags behind the other components of the S&P 500 Index. NVIDIA and Apple have yet to announce their latest quarterly results, but Butters noted that the combined expected earnings per share growth of the Magnificent Seven has dropped from 33.6% a month ago to 22.6%. In comparison, the combined earnings per share growth of the remaining 493 companies in the S&P 500 Index stands at 32.6%. This means that the profit growth rate of the Magnificent Seven is likely to fall below that of the other S&P 500 components for the first time since the fourth quarter of 2022. Analysts expect this trend to continue into the fourth quarter of this year.