The technology giants' earnings report week is coming, the "seven giants" weighting is too high or will drag down the market, what is the impact on the encryption industry?

This week, four of the "Magnificent Seven" tech giants in the US stock market are about to release their earnings reports, raising concerns among investors about their excessively high market weight and profit share. The performance of the S&P 500 index increasingly relies on these seven companies, and the breadth of the market is worrying. At the same time, the tariff policies of the Trump administration and the progress of US-China trade negotiations are affecting market nerves, and encryption asset allocators need to be cautious of the impact of traditional market fluctuations on on-chain capital flows. The financial, industrial zones, and non-US stock indices are showing signs of rebound; will the market landscape change due to the earnings reports of the giants?

"The Magnificent Seven" Weighted Pressure, Earnings Report Week Becomes a Key Test "Magnificent Seven" ( is increasingly heavy on Wall Street, and this week may be the moment it finally crumbles under the pressure. This week, four of the largest companies in the group will announce their earnings. Currently, investors are questioning how much longer this small group of tech giants can pull the entire U.S. market forward.

Reuters analysis points out that the performance of the S&P 500 index has become so unbalanced that it now resembles a tracker for these seven companies rather than a barometer reflecting the true state of the U.S. economy. Since the beginning of 2023, the heavily weighted S&P 500 composite index has risen by 67%. This increase is more than double that of its equal-weighted index (32%), which treats all companies equally, regardless of size.

Two years ago, the ratio of these two indices was 0.66, meaning that the market capitalization weighted index was worth about two-thirds of the equal-weight index. Now, this ratio has risen to 0.84, reaching its highest level since 2003. This leap clearly indicates that the largest companies are occupying unprecedented market space.

Profits highly concentrated, market health concerning, the encryption market may be affected The root of this imbalance lies in profits. Larry Adam, Chief Investment Officer at Raymond James, stated that the expected profits of the S&P 500 index are 14% higher than those of the equal-weighted index. Tajinder Dhillon, a senior research analyst at the London Stock Exchange Group )LSEG(, added that last year, the "Magnificent Seven" contributed 52% of the total profit growth in the market.

This dominance carries risks. Traders dislike the entire market becoming so reliant on just a few names. A misstep by any of these companies could impact the entire portfolio (including the encryption asset portfolio). Dhillon stated, "It's unhealthy when the fate of the market is tied to a small group. If one of these companies collapses, everyone will feel it." This also leads to less attention being paid to areas outside of tech giants. The movements of Nvidia ) affect the entire market (even impacting the sentiment in the encryption market), stifling the motivation for diversified investments and sidelining small stocks (and emerging encryption assets).

Tariff policy disturbances, investors cautiously observe on-chain institutional movements Donald Trump reached a trade agreement with the European Union on Sunday, imposing a 15% tariff on most European goods entering the United States, including automobiles. Then on Monday, he stated that the global benchmark tariff would be set between 15% and 20%. This left some investors uneasy, although many seemed unfazed during Monday's trading.

But this week is not over yet. The final deadline for tariffs is set for Friday, and traders are closely watching to see if more agreements will be announced—especially with China. Senior officials from the US and China held a new round of talks in Stockholm on Monday, trying to finalize new terms before time runs out.

Despite these concerns, US stock futures rose slightly on Monday. S&P 500 futures were up 0.15%, Nasdaq 100 futures rose 0.24%, and Dow Jones Industrial Average futures increased by 60 points. However, the gains were not significant. Both the S&P 500 and Nasdaq Composite indices set historical highs, but the upward trend lacked genuine momentum. This marks the 15th record closing for the S&P 500 index in 2025, but it barely closed above the flat line. The Dow slipped 0.1%, while the Nasdaq index only rose 0.3%.

Non-giant zones and global indices show vitality, can the market pattern be broadened? Outside of the tech giants, other parts of the market are showing vitality. Sectors such as finance and industry have begun to demonstrate robust performance. However, their momentum is still overshadowed by the enormous influence of the "magnificent seven".

Outside of the United States, stock indices with a low proportion of tech stocks are also rising. The UK's FTSE 100 index (FTSE 100) and Germany's DAX index have both reached new highs, proving that technology is not the only engine (providing diverse investment options for the encryption market).

Whether this is the true beginning of the market's expansion or merely a flash in the pan will depend on the revelations of these financial reports. If the giants perform strongly, their dominance will continue. If they disappoint, the market may ultimately give small zones (as well as alternative assets like encryption) some breathing room.

Conclusion: This week's earnings reports from tech giants and the direction of trade policies will become a key touchstone for assessing the breadth and resilience of the U.S. stock market. The structural issue of profits being highly concentrated among a few giants not only amplifies the risk of traditional market fluctuations but may also transmit to the encryption field through on-chain data. Crypto investors need to closely monitor changes in the traditional market's wind direction, timely adjust their strategies regarding the correlation between digital assets and traditional markets, and seize structural opportunities in non-tech zones and the global market's catch-up.