By Teresa Rivas

In a rally powered by the Magnificent Seven, boring can still be beautiful. Hopes for artificial intelligence and quantum computing garner headlines, and it isn't all hype. Big Tech profits are expected to grow faster than for the S&P 500, and margins are seen as holding up, too. That said, after tech's recent selloff, investors might be looking for less volatile options. And they don't have to trade gains for stability.

That's the gist of a report from Torsten Sløk, chief economist at Apollo Global Management. He says some big tech stocks are being outdone by what might be considered humdrum names. Take Tractor Supply and Apple. The ag retailer has outperformed the iPhone giant since 2001. In the past five years, Tractor Supply has more than doubled, compared with Apple's 83% gain.

Then there's Domino's Pizza and Alphabet. Since 2007, the pizza company has outperformed the internet giant. And Old Dominion Freight Line gained roughly 56% over the past five years compared with Amazon.com's just over a third.

"The bottom line is that fancy tech stocks are getting so much attention, and investors spend a disproportionate amount of time discussing their growth strategies and new products," wrote Sløk. "But numerous other stocks and investment strategies can deliver better and more-stable returns with fewer sleepless nights." It makes sense that "may you live in interesting times" is understood as a curse, not a blessing.

Write to Teresa Rivas at teresa.rivas@barrons.com

Last Week

Markets

he Jackson Hole rally fizzled as the week began. On Monday, President Donald Trump tried to fire Federal Reserve governor Lisa Cook, although she hasn't been charged with anything and vowed not to resign. Stocks rose. Nvidia results beat expectations, but its shares fell on China uncertainties. The administration doubled tariffs on India to 50% and ended tariff exemptions on small packages. The S&P 500 and Dow industrials set highs on Thursday, then fell on Friday. On the week, the Dow fell 0.2%; the S&P, 0.1%; and the Nasdaq Composite, 0.2%. Summer's over.

Companies

The Trump administration ordered Ørsted to stop work on a $1.5 billion wind farm off Rhode Island that was 80% completed. SpaceX successfully launched a test flight of its Starship rocket. Elon Musk's xAI sued Apple and OpenAI, claiming antitrust violations. Interactive Brokers joined the S&P 500, replacing Walgreens Boots Alliance, acquired by Sycamore Partners. The Wall Street Journal reported that Exxon Mobil held talks with Russia's Rosneft on restoring its pre-Ukraine war partnership. Trump fired his recently confirmed Centers for Disease Control and Prevention chief after she clashed with Health Secretary Robert F. Kennedy Jr. over vaccines.

Deals

Keurig Dr Pepper said that it would buy coffee company JDE Peet for $18.4 billion. The plan: to split the company into coffee and soft drinks, unraveling the 2018 merger of Keurig and Dr Pepper... AT&T will buy spectrum from EchoStar for $23 billion.

Next Week

Monday 9/1

Equity and fixed-income markets are closed in observance of Labor Day.

Tuesday 9/2

The Institute for Supply Management releases both its Manufacturing and Services Purchasing Managers' Indexes for August. Consensus estimate for the Manufacturing PMI, released on Tuesday, is for a 48.9 reading, about one point more than in July. Expectations for the Services PMI, released on Thursday, are for a 50.5 reading, a bit higher than previously.

Wednesday 9/3

Two megacap tech companies highlight an otherwise light earnings calendar. Salesforce reports quarterly results on Wednesday, and Broadcom weighs in on Thursday.

Friday 9/5

The Bureau of Labor Statistics releases the jobs report for August. Economists forecast a 75,000 increase in nonfarm payrolls, 2,000 more than in July. The unemployment rate is expected to tick up to 4.3% from 4.2%. Another report showing weak jobs growth would all but cement an interest-rate cut at the Federal Open Market Committee's mid-September monetary-policy meeting. Traders have priced in a 90% chance of a cut.

The Numbers

21.6%

Once-rare seven-year car loans as a percentage of all car loans; they surged as cars got more expensive.

$1.2 T

How much companies worldwide are expected to spend on software this year, up some 11% from 2024.

205 K

Estimated drop in U.S. net immigration in 2025, driven by closed borders, deportations, and out-migration.

30%

Rise in the world futures contract for arabica coffee in August, the biggest monthly gain since 2014.

Write to Robert Teitelman at bob.teitelman@dowjones.com

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August 29, 2025 19:00 ET (23:00 GMT)

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