Tech Titans Tumble: Magnificent Seven Stocks Plunge as Nasdaq 100 Enters Correction Territory
Staff Editor Magnificent Seven Stocks Tumble as Tech Sector Faces Pressure
The so-called Magnificent Seven stocks experienced significant losses on Monday, dragging down the Nasdaq 100 index and sending ripples through the broader market. This downturn comes amid growing concerns over trade policies, economic strength, and competitive pressures in the artificial intelligence (AI) sector.
The Nasdaq 100 plunged 4% into correction territory, while the S&P 500 fell 3%, marking its worst week in six months. Market sentiment was further dampened by recent comments from President Donald Trump regarding trade policies and tariff actions.
Investors are increasingly wary of the potential impact of Trump’s trade stance on the US economy, with fears mounting about overall economic strength. This anxiety compounds a previous tech stock sell-off linked to competitive pressures in the AI industry.
Adding to these concerns is the emergence of Chinese startup DeepSeek and its AI model, which has raised questions about the United States’ ability to maintain its competitive edge in AI technology.
The Magnificent Seven stocks, which have been driving much of the market’s gains, saw substantial declines:
- Tesla led the losses with a staggering 15% drop
- Nvidia fell 5.1%
- Alphabet declined 4.5%
- Apple slipped 4.9%
- Meta decreased by 4.4%
- Microsoft saw a 3.3% reduction
- Amazon closed down 2.4%
These significant moves underscore the volatility currently facing the tech sector and highlight the broader market’s sensitivity to developments in trade, economic policy, and technological competition. As investors reassess their positions, market watchers will be closely monitoring these key stocks for signs of stabilization or further decline.
