Big Tech’s $4 Trillion Boomerang Powers S&P 500 to New Heights

Big Tech stocks are back and powering the S&P 500 Index to new highs, giving investors confidence that the latest equity market rally has room to run even as the risks from the war with Iran remain.

Since the S&P 500 hit its 2026 bottom on March 30, the technology sector has gone from the worst group in the benchmark to the best. An index tracking the so-called Magnificent Seven technology giants is up 20% over that period, reversing a 17% decline from its October peak. Shares of Microsoft Corp. are probably most emblematic of the turnaround, surging 19% after tumbling 34% from their October 28 peak to their March 27 low.