The Federal Reserve’s pivot toward an easier monetary policy is rekindling fears that the central bank could be reinflating a bubble, and the so-called ” Magnificent 7 ” stocks sit squarely at the center of it. The Fed’s willingness to cut rates amid stubborn inflation is igniting fears that easing too much, too quickly risks creating asset bubbles, encouraging investors to keep flocking into riskier corners of the markets. Earlier this week, hedge fund billionaire David Tepper i ssued a stern warning that loosening too much risks more inflation and poses other dangers to the economy and markets. “If they go too much more on interest rates, depending what happens with the economy … it gets into the danger territory,” Tepper said Thursday on CNBC’s ” Squawk Box .” “You’ve got to be careful not to make things too hot.” Bank of America’s widely-followed strategist Michael Hartnett argues that the megacap technology group — Apple , Microsoft , Alphabet , Amazon , Meta Platforms, Nvidia and Tesla — is the “best bubble proxy today.” Since the March 2023 market bottom, the basket of leading stocks has soared 223%, powering the broader market to record highs. At a trailing price-to-earnings ratio of 39 times and trading nearly 20% above its 200-day moving average, the group already shows hallmarks of speculative excess, Hartnett noted. Bank of America looked at the history of great bull markets and crashes, assessing how the “Mag 7” stacks up to past Wall Street speculative frenzies. Mag 7’s pace of gains already places the group in league with history’s great blow-offs. Looking back over the past century, BofA tracks 10 major equity bubbles — from the top of U.S. tech stocks in 2000 to China’s A-shares in 2007 — with average trough-to-peak advances of 244%. The Mag 7, at 223%, is already approaching that bubble benchmark, according to the bank. ( Learn the best 2026 strategies from inside the NYSE with Josh Brown and others at CNBC PRO Live. Tickets and info here . )