In 2022, after Mag 7 had collapsed, ChatGPT's launch in October 2022 reversed the pattern; AI investment CapEx and animal spirits were so powerful that the Mag 7 rose so much (up 40%+ while S&P fell 25%) that they dragged the S&P up, forestalling what would have been a 40%+ broader market decline over 10 months.

causalpending

Speaker

Jeremy Grantham

Evidence Quote

S&P down 25 Mag 7 down 40...chat GPT comes out...Mag 7 went up...they took the S&P with them

Source

Jeremy Grantham: Lessons from 60 Legendary Years of InvestingThe Master Investor Podcast with Wilfred Frost
Created: 8/12/2026, 6:39:12 PM

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