Apple(AAPL) ZACKS·2025-04-03 01:05Group 1: Market Performance of the Magnificent 7 - The Magnificent 7 stocks have recently lost their leadership position, with rising capital expenditures causing market discomfort [2] - Year-to-date performance shows Meta Platforms (META) is close to positive territory, while Tesla (TSLA) has lost about one-third of its value [5] - The overall earnings outlook for the Magnificent 7 is less positive than in the past, with earnings expected to increase by +12.6% in 2025 on +9.3% higher revenues [8][9] Group 2: Earnings Expectations for S&P 500 - Total S&P 500 earnings for Q1 2025 are expected to grow by +5.9% from the previous year, with revenues up by +3.9% [5][18] - For the calendar year 2025, S&P 500 earnings are projected to grow by +9.6%, with 12 out of 16 sectors expected to show positive growth [5] - The Tech sector is anticipated to be a significant growth driver, with earnings expected to rise by +12.6% in Q1 2025 [13] Group 3: Sector-Specific Insights - The Tech sector has shown consistent growth, with earnings growth of +26.2% in Q4 2024 and expected to continue in 2025 [14][15] - Despite the positive outlook, recent data indicates a shift in earnings estimate revisions, with some pressure noted since January 2025 [15][21] - Sectors experiencing the most significant cuts to earnings estimates include Conglomerates, Aerospace, and Autos, while Medical and Construction are the only sectors with increased estimates [21]