LIVE MARKETS-Mega-caps may be stumbling, but the equal-weighted S&P 500 is rumbling

Roundhill Magnificent Seven ETF +2.59% Pre
Dow Jones Industrial Average -0.15%
CBOE Volatility Index +0.33%
S&P 500 index +0.80%
NASDAQ +1.59%

Roundhill Magnificent Seven ETF

MAGS

65.26

65.54

+2.59%

+0.42% Pre

Dow Jones Industrial Average

DJI

48463.72

-0.15%

CBOE Volatility Index

18.23

+0.33%

S&P 500 index

SPX

7022.95

+0.80%

NASDAQ

IXIC

24016.02

+1.59%

US equity index futures red; Nasdaq 100 off most, down ~0.7%

Feb NY Fed Manufacturing index 7.10 vs 6.98 estimate

Euro STOXX 600 index ~flat

Dollar rises; crude, bitcoin decline; gold down >1%

US 10-Year Treasury yield edges down to ~4.04%

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MEGA-CAPS MAY BE STUMBLING, BUT THE EQUAL-WEIGHTED S&P 500 IS RUMBLING

With mega-caps stumbling so far in 2026, the equal-weighted S&P 500 index .SPXEW is handily outperforming the cap-weighted S&P 500 index .SPX.

Indeed, the Mag 7 ETF MAGS.Z, whose members account for more than 30% of the SPX's $61.82 trillion market cap, is trading down more than 7% year-to-date. With this, the SPXEW has advanced 5.8% vs. an SPX decline of just over 0.1%.

Of note, since October 29, when the SPXEW/SPX ratio fell to 1.107, or its lowest level since April 2003, the equal-weighted index has outperformed the cap-weighted index.

The ratio has reclaimed its 200-day moving average (DMA), and on Friday, it ended at 1.201, which is its highest level since July 2025.

As long as the ratio's 200-DMA, which ended Friday at 1.167, now acts as support, the equal-weighted index appears biased to continue to outperform the cap-weighted version. The ratio's April 2025 high was at 1.256.

Meanwhile, the SPXEW has scored 13 record closing highs so far this year versus just four for the SPX. Additionally, the SPXEW/SPX ratio is on pace for its biggest monthly gain since April 2009.

(Terence Gabriel)

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EARLIER ON LIVE MARKETS:

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