The inflation swap market is experiencing notable shifts, with the 2-10 Inflation Swap curve reaching its highest level since March 23, 2025. This development has implications for the performance of major technology stocks, collectively referred to as the 'Mag 7', which have underperformed the broader market by 4.5% due to rising inflation expectations. Additionally, mutual funds are reported to be 790 basis points underweight in the Mag 7. Recent data indicates that one-year inflation swaps are trading above two-year inflation swaps, suggesting increased inflation risk in the near term. The materials equity sector has declined by 140 basis points, while technology stocks have shown resilience. Analysts predict that capital expenditure growth for the Mag 7 will slow significantly in 2026, as stocks typically peak when the best growth has already been discounted.