5 Stocks Preventing a S&P 500 Correction (Hint: None Are in the “Magnificent Seven”)

Is the stock market in correction territory? It depends on what you mean by stock market.

The Dow Jones Industrial Average (DJINDICES: ^DJI) and the Nasdaq Composite Index (NASDAQINDEX: ^IXIC) are indeed in correction. But, perhaps surprisingly, the S&P 500 (SNPINDEX: ^GSPC) isn’t (at least as of the market close on Friday, March 27, 2026).

Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »

Over the last few years, the so-called “Magnificent Seven” stocks have fueled the S&P 500’s impressive gains. However, all seven stocks have plunged by double-digit percentages year to date. If the Magnificent Seven isn’t preventing the S&P 500 from slipping into correction territory, which stocks are? Five stocks especially stand out.

Energy stocks have been sizzling hot in 2026. Oil and gas prices skyrocketed following the U.S. and Israeli attacks on Iran. With Iran effectively blocking passage through the vital Strait of Hormuz, commodity prices have remained high. Unsurprisingly, the energy sector is the only S&P 500 sector to deliver double-digit year-to-date gains.

Fortunately for the S&P 500, two energy giants among its top 20 largest components have been huge winners. ExxonMobil (NYSE: XOM) has the 13th-highest weight in the S&P 500. Chevron (NYSE: CVX) has the 19th-largest weight. Both stocks have soared around 40% so far this year.

While ExxonMobil and Chevron both operated huge integrated oil and gas operations, their businesses are somewhat different. ExxonMobil’s upstream oil production is now significantly more profitable thanks to higher oil prices. Chevron benefits from these high prices as well, but it’s also attractive as the largest U.S. natural gas producer.

Inflation was already a concern before the Iran conflict. With oil prices rising, it’s an even bigger worry. Higher fuel costs could push up prices across a wide range of products. That’s bad news for most stocks. However, it can actually be good news for top consumer staples stocks like Walmart (NASDAQ: WMT) and Costco Wholesale (NASDAQ: COST).

Walmart’s and Costco’s businesses have historically been relatively resistant to inflation. Consumers who are tightening their purse strings still shop at Walmart and Costco stores because they know both companies offer low prices. Investors know this, too. That’s a big reason why Walmart’s and Costco’s stocks were up by more than 10% year to date as of the end of last week.