The Magnificent 7 technology stocks that have largely powered the bull market of the past two years have fallen into a correction, defined as a decline of 10% or more from recent highs.
The sharp decline, which has largely occurred in the past month, has erased $1.4 trillion U.S. in market value from the once high-flying tech names.
According to the Bloomberg Magnificent 7 index, an equal-weighted gauge that consists of Apple (AAPL), Nvidia (NVDA), Microsoft (MSFT), Alphabet (GOOGL), Amazon (AMZN), Meta Platforms (META), and Tesla (TSLA) has fallen 10% from a peak reached last December.
Electric vehicle maker Tesla has seen the biggest decline among the technology stocks, followed by Microsoft and Alphabet.
Other Magnificent 7 members, such as Apple and Nvidia, have seen big drawdowns since the start of the year before rebounding somewhat.
So far in 2025, only Meta Platforms (META) stock is in positive territory, having risen 10% following a record-setting rally that lasted 20 consecutive days.
However, Meta’s stock has also pulled back in recent trading sessions, falling 7% in the past five days.
Tesla’s stock is the worst performer among the Magnificent 7. Down 20% on the year, the automaker’s stock is technically in a bear market.
Analysts say the Magnificent 7 stocks have been harmed by several issues, including the threat of trade tariffs from U.S. President Donald Trump and the emergence of Chinese artificial intelligence (A.I.) app DeepSeek.
In Tesla’s case, the electric-vehicle maker has also been hit by a string of bad sales reports and heightened competition globally, notably in China.
The mega-cap technology stocks face their latest market test later today (Feb. 26) when chipmaker Nvidia reports its latest financial results after the end of trading.
