re: Why is the stock market rallying right now?

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while most stocks are down over 50%

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The Mag 7 is responsible for ~30% of the S&P's growth. This is an incredibly small amount of companies (1.6%) responsible for a vastly disparate amount of growth (and, as such, should be looked at as more of a potential bubble than a permanent fixture), but basic math says that "most stocks" can't possibly be down 50% with the overall market as high as it is even removing that marginal growth.

The S&P is currently at $5,069.53, a year ago it was at $3,982.24. That's $1,087.29 in growth over the last year. Thirty percent of that (Mag 7's contribution) is $326.187. That means without the Mag 7, the market would likely be somewhere around $4,743.34 which would put it at nearly the highest amount (it got only a few points higher toward the end of December 2021).