Magnificent Seven Lose $1 Trillion in Broad Tech Sell-Off
Investors endured a sweeping sell-off on Thursday as fears about a slowdown in the buildout of artificial intelligence spread beyond technology companies and shook the wider market. The Magnificent Seven — the group of major technology stocks that had powered much of the market’s recent strength — lost $1 trillion in value during the rout, underscoring how heavily investor confidence had become tied to the AI boom.
The Nasdaq Composite fell more than 5%, pushing the tech-heavy index into correction territory. The small-cap Russell 2000 also entered a correction, while the Dow Jones Industrial Average dropped more than 1,800 points, or more than 3%. The broad S&P 500 declined more than 4%, extending the damage across the market rather than confining it to a handful of technology shares.
Thursday’s losses erased the major gains recorded during Wednesday’s postelection rally and then went further. The scale of the reversal reflects investors reassessing the pace and durability of AI-related investment, with the concern powerful enough to trigger one of the market’s most dramatic sessions in the period covered by the report.
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