The current earnings season for S&P 500 constituent companies is showing the broadest profit growth in over four years, offering some relief to U.S. stock investors amid the market's worst weekly performance since October. This trend indicates that corporate profit growth in the United States is gradually reducing its reliance on a handful of major technology firms.

According to data compiled by Bloomberg Intelligence, more than 75% of S&P 500 companies that have reported earnings achieved year-over-year profit growth. This marks the highest proportion since the third quarter of 2021.

This data may help alleviate market concerns that U.S. corporate profit growth is overly dependent on a small group of tech giants. Since the end of 2022, the so-called "Magnificent Seven" stocks have surged by a cumulative 310%, raising fears of a potential bubble in the U.S. stock market. This week, technology stocks led the decline as investors questioned the returns on massive investments in artificial intelligence, with the S&P 500 falling 2% and posting its worst weekly performance since October 10 of last year.

**Non-Tech Sectors Begin to Gain Momentum** At the same time, a broader range of sectors is contributing to market confidence. The equal-weight S&P 500 index, which reduces the influence of tech giants, has risen 3.5% year-to-date, outperforming the market-cap-weighted benchmark index.

The latest earnings season reveals that sectors such as industrials, consumer goods, and healthcare are beginning to play a more significant role in driving index returns. Investors expect this trend to continue broadening.

"Growth is becoming more abundant, which means profits are also becoming more widespread," said Guy Miller, chief strategist at Zurich Insurance. "What we are seeing is that you don't necessarily have to invest in technology companies."

Highlights among non-tech sectors include General Motors, whose shares rose 9% due to strong profit outlook. Procter & Gamble also recorded gains, supported by signs of a rebound in U.S. sales. The company's product portfolio spans various categories, from toilet paper to detergents and skincare products.

**Strategists Foresee Continuation of Trend** Strategists from firms including JPMorgan Chase and Goldman Sachs Group anticipate that this trend of earnings diversification will persist in the coming months, driven by strong economic growth prospects.

"Strong and accelerating economic growth in the first half of 2026 is creating greater near-term tailwinds for smaller and more cyclical stocks compared to the market's largest equities," wrote Goldman Sachs strategist Ben Snider in a recent report.

Analysts also predict that the earnings gap between the seven major tech stocks and the remaining 493 components of the S&P 500 will narrow throughout the remainder of the year.

Data tracked by Bloomberg Intelligence indicates that the "Magnificent Seven" are expected to see an 18% profit growth in 2026, down from last year's 28% increase. In contrast, earnings growth for the rest of the index's constituents is projected to accelerate from 8% in 2025 to 12% this year.