Bloomberg Surveillance · Monday, July 13, 2026
The software sector and the 'Magnificent Seven' stocks are experiencing pressure, moving away from broad market trends to company-specific performance. The focus is shifting to how companies are affected by AI, distinguishing between beneficiaries and those threatened by it, signaling a move towards greater market breadth.
“Yeah, it's been it's been brutal for software, and it's actually been brutal for the Magnificent Seven. And I think you imagine you'd closed your eyes and you'd worken up one year later, You just wouldn't believe what you've seen. Because we're used to years off the MAG seven just driving the whole s and P five hundred and look this year, but also the last months of last year, it's been pretty brutal.”
“The way we look at software is this casual concept of MAG seven or software as a whole. I just don't think it works anymore. I think it really starts to become much more stock specific, much more company specific. Who are actually beneficiaries of AI versus being threatened by AI? And interestingly, we've been complaining a lot about narrow markets and lack of market breadth. That's changing actually underneath our eyes. That's really starting to change, which I think is a good thing.”