Shares of Magnificent Seven technology companies soared in 2023 and 2024 due to optimism about artificial intelligence and favorable macroeconomic conditions.

After historic price action Monday, has the music finally stopped for Big Tech’s rally?

What Happened: The SPDR S&P 500 ETF Trust SPY saw one of its biggest down days in recent years during the Monday trading session. The index as a whole fell 2.66%; at one point, it traded down around 3.5% before rallying.

The Magnificent Seven comprises around 30% of the index, according to data from Benzinga Pro. On Monday, shares of the companies posted major losses.

• Apple Inc AAPL fell 4.85%
• Microsoft Corp MSFT fell 3.34%
• NVIDIA Corp NVDA fell 5.07%.
• Alphabet Inc GOOG GOOGL fell 4.52%
• Amazon.com Inc AMZN, the only component to outperform the S&P 500, fell 2.36%
• Meta Platforms Inc META fell 4.42%
• Tesla Inc TSLA fell by a staggering 15.43%

Collectively, the seven companies shed around $750 billion in market capitalization in a single day.

While the S&P 500 has not yet entered correction territory, the tech-focused Invesco QQQ Trust QQQ crossed the 10% threshold indicating a correction.

Why it Matters: An investor who bought $100,000 worth of each of the seven companies at the beginning of the year would be left with around $595,720.72 today.

Tesla’s stock has wiped out more than half of its value since all-time highs in December. The Austin, Texas-based company’s meteoric rise in the aftermath of the 2024 election was perhaps tied to optimism about CEO Elon Musk‘s political influence in the Trump Administration.

Musk could be hindering Tesla’s operations with his political activism. Sales of the company’s electric cars cratered in areas that voted against Trump. Foreign markets have been even less favorable — in Europe, sales of Teslas fell 45% in one week.

Nvidia’s stock has similarly posted massive losses in recent weeks, losing over $800 billion in value since Trump’s inauguration. Trump’s tariff plans and repudiation of the CHIPS Act may have scared off investors.

Before Trump’s second term, many market commentators saw the Magnificent Seven’s valuations as unsustainable in the long run. Even after the February and March sell-off, the companies’ median price-to-earnings ratio is 35. Tesla is still trading more than 100 times over earnings.

Bettors on Polymarket peg the odds of a recession in 2025 as 38%.

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