The Mag 7, a group of seven major technology companies, has seen a slowdown in profit growth compared to the broader market. This trend suggests that the pair trade between the Mag 7 and the broader market may continue to be effective. The outperformance of the Mag 7 peaked in July, and their net income growth rates are expected to align with the broader market. The Mag 7 currently drives over 20% of the capital expenditure in the S&P 500. Performance data updated through Friday’s close and charts from Morgan Stanley highlight these trends.