Mag Seven Become Wall Street's Bomb Shelter Amid Iran War
Tech megacaps are the only S&P 500 sector in the green since US strikes on Iran began, up 1.5% since Feb 27.
War is hell — unless you're holding Magnificent Seven stocks, apparently.
As the US-led military campaign in Iran sends shockwaves through global markets, investors are doing something unexpected: piling into megacap tech. The sector has climbed 1.5% since February 27, making it the sole S&P 500 sector posting gains since strikes began.
The same Big Tech giants that had fallen out of favor are now being treated as "safety assets." That's a remarkable reversal. Companies once criticized for stretched valuations are suddenly the bunker investors want to hide in.
Every other S&P 500 sector is underwater. The flight to tech megacaps signals that Wall Street views these trillion-dollar behemoths as more resilient than traditional safe havens during geopolitical chaos.
When bombs drop, money flows to the biggest balance sheets in tech. That's the new playbook.