For the first quarter of 2025, the "Magnificent 7" companies are projected to report earnings growth of 15%, while the remaining 493 S&P 500 companies are expected to see 5% growth. However, earnings growth for the "Magnificent 7" is forecasted to slow to 16% in calendar year 2025 from 37% in 2024. In contrast, earnings growth for the other 493 S&P 500 companies is expected to improve from a 4% decline in 2023 to 13% growth by 2026. The S&P 500 index is currently trading at a price-to-earnings (P/E) ratio of approximately 25, which is above its 40-year average of around 19. If valuations reverted to the historical mean, the index would be closer to 4,300 rather than its current level near 5,150. Earnings per share (EPS) estimates for the S&P 500 in 2025 have been revised down to $261.39, reflecting an anticipated 10% growth and a P/E ratio of 20, suggesting that stocks remain relatively expensive. Despite these downward revisions, JPMorgan notes that the reductions in 2025 EPS estimates since January are not larger than usual, with a 2.5% decrease compared to the 10-year average of 2.6%. Overall, big technology companies are expected to experience a slowdown in earnings growth from around 30% in 2023 and 2024 to 16-17% in 2025 and 2026, while the broader S&P 500 excluding these top firms is projected to see improving earnings performance.