Last week, 437 stocks in the S&P 500 rose, yet the index closed down nearly 1%. The decline is attributed to the 'Magnificent Seven' (Mag 7) stocks, which peaked on July 10 and have since dropped approximately 12%, resulting in a collective loss of about $1.7 trillion in market value over two weeks. In contrast, small-cap stocks have gained over 10% during the same period, indicating a market rotation despite the downturn in the Mag 7. Analysts note that while the Mag 7's decline has significantly impacted sectors associated with these stocks, the broader market has continued to advance, suggesting a potential shift in market leadership and participation. This divergence in performance raises questions about the sustainability of the current market trends as new names emerge at the forefront of the rally.