Apollo's Chief Economist Says AI Gains Are Confined to the Mag 7
As seen on the 24/7 Wall St. homepage on October 25, 2026.
The broadening trade, the idea that AI profits spill into the other 493 names, is exactly what Apollo's Torsten Slok is calling empty here.
JUST IN: Apollo chief economist says AI has delivered zero payoff "outside Mag 7"
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Apollo's Torsten Slok is putting a name to what many investors have quietly suspected: the artificial intelligence boom has not translated into measurable economic payoff for the broad market, only for the handful of mega-cap technology names that make up the Magnificent Seven.
That matters because a large part of the bull case for equities over the past two years has rested on what is called the broadening trade, the expectation that AI-driven productivity gains would eventually lift earnings across the other 493 names in the S&P 500. Slok is calling that narrative empty.
For investors positioned in cyclicals, industrials, or mid-caps on the premise that AI spending would ripple outward, this view from a major Wall Street economist is a direct challenge to that thesis and one worth weighing carefully.
The post drew replies and likes on X shortly after it was shared on October 25, 2026, a level of engagement that suggests the take is landing as a genuine conversation starter among market participants.