S&P 500 Gains 1.22% in July; Bonds Beat Stocks by 1.1ppt Amid Mixed Earnings from Magnificent Seven

In July, the S&P 500 recorded a total return of 1.22%, slightly below its 25-year average of 1.25%. The performance was impacted by the 'Magnificent Seven' tech stocks, which collectively reduced the index's return by 1.27%. Notably, Apple and Tesla contributed positively, adding 0.57% to the index. The month saw a strong performance from utilities, which outperformed their historical averages by 6%, while the technology sector, represented by the Technology Select Sector SPDR Fund ($XLK), experienced its first negative July since 2008, declining by 3.28%. The earnings reports from the Magnificent Seven stocks, including Tesla, Alphabet, Microsoft, Meta, Amazon, and Nvidia, have been mixed, with Meta seeing a positive response of 5%, while Amazon and Alphabet each fell by 5%. As of the latest updates, Nvidia is set to report earnings on August 28, while Apple and Amazon reported on August 1, with Apple showing a 0% change and Amazon down by 5%. Bonds outperformed stocks in July, with the Bloomberg U.S. Aggregate Bond Index ($AGG) gaining 1.1 percentage points over the S&P 500 ($SPY). Year-to-date, the S&P 500 has returned 16.90%, a significant increase compared to the 8.27% it would have achieved without the influence of the Magnificent Seven.