Magnificent 7 stocks lose $1.5T in what might be ‘textbook correction’
The “Magnificent 7” Tech Stocks Face Volatility Amid Tariff Threats
In recent days, the tech stocks known as the “Magnificent 7” have experienced significant losses due to President Trump’s tariff threats, causing market volatility. Despite this, experts believe that these fluctuations are a normal part of market corrections and are likely to stabilize as more permanent policies take effect.
This group of tech giants, including Tesla, Nvidia, Alphabet, Meta, Amazon, Apple, and Microsoft, have collectively lost over $1.5 trillion in value since the beginning of 2025, following a period of substantial growth last year.
Ted Jenkin, co-founder of oXYGen Financial, explained, “With markets reaching all-time highs in 2024, a pullback was expected, especially for the high-flying Magnificent 7 stocks.”
Concerns over a potential trade war and recession have hit these stocks hard, as they usually trade on the promise of future earnings. However, some of the stocks, including Nvidia, Tesla, Microsoft, and Amazon, started to recover on Tuesday.
Each tech giant faces its own challenges, such as protests against Tesla’s Elon Musk and the Department of Justice’s antitrust actions against Google. Despite these obstacles, industry experts remain optimistic about the long-term prospects of the AI Revolution.
While Tesla’s stock has experienced a significant decline of nearly 40% this year, other companies like Meta have managed to stay afloat with positive earnings reports. These contrasting performances reflect the diverse challenges and opportunities within the tech sector.
Overall, the recent market fluctuations are viewed as a “textbook correction” by financial analysts, signaling a short-term adjustment rather than a prolonged bear market. Despite concerns about the impact of tariffs and economic policies, the tech industry remains resilient and poised for future growth.
