22 Jul 2025
“If Big Tech keeps delivering, we’re looking at a record-breaking summer on Wall Street,” says Nigel Green, CEO of global financial advisory giant deVere Group, as key earnings from Alphabet and Tesla take centre stage this week.
Following all-time highs for the S&P 500 and Nasdaq on Monday, lifted by strength in Alphabet, Amazon, and other tech megacaps, markets are on a knife’s edge—awaiting confirmation that sky-high valuations are backed by real results.
Nigel Green comments: “If earnings hold up, especially from the biggest names in the game, the rally has legs. If they miss, we could see a hard reset.”
With the S&P 500 already up strongly year-to-date and trading above its long-term averages, the pressure is now squarely on the ‘Magnificent Seven’ stocks to justify market confidence.
“Investors are betting on tech to lead again. The bar is high, and the stakes are higher. Alphabet and Tesla don’t just report this week; they set the tone for the rest of the market.”
So far this earnings season, 86% of S&P 500 companies that have reported have beaten expectations. But with concentration in megacaps higher than ever, Nigel Green warns that disappointment from just one or two names could derail momentum.
“There’s no margin for error. These stocks are supremely dominant. If they stumble, the entire index feels it.”
He continues: “Alphabet is still the benchmark for digital infrastructure and AI. Tesla’s different. It’s volatile by nature. But what Musk is building around autonomy and robotics has the potential to reset the narrative—if it lands.”
The deVere Group chief executive also points to the broader macro environment, where volatility from tariffs, elections, and rate speculation continues to swirl, but isn’t stopping the rally.
“Wall Street right now is ignoring the noise. This is a market driven by micro data—earnings, innovation, execution. This is why this week matters so much.”
The S&P 500 currently trades at a forward P/E of over 22, compared to a 10-year average of 18.4. That premium, Nigel says, can only be defended by outperformance.
“You’re paying more for stocks today because you believe in what’s coming next. That belief has to be validated, starting this week.”
Estimates show Big Tech is expected to drive the bulk of earnings growth for the quarter: 14% for the Magnificent Seven versus just 3.4% for the rest of the index.
“It’s a two-speed market. If tech leads, the S&P wins. If it falters, there’s nowhere else big enough to pick up the slack.”
While some sectors like financials and healthcare are delivering steady results, they lack the weight and momentum of the tech giants.
“Tech isn’t just outperforming. It’s carrying the rally. That’s why this earnings season isn’t just another checkpoint, it’s a referendum on market leadership.”
Nigel Green concludes with a clear message to investors watching from the sidelines: “If results are strong, expect new highs. If not, expect turbulence. But either way, this is the week where direction gets decided.”
“We’re watching the next chapter of this bull market get written in real time.”