With high-growth expectations baked into their valuations, technology stocks have always been susceptible to big swings.
Turbocharged by indications of a strengthening American economy, the prospect of interest rate cuts and artificial intelligence hype, a select group of stocks — the so-called Magnificent Seven — now account for more than a third of the S&P 500 by value, and have generated the bulk of the blue-chip index’s gains.
The Mag-Seven — Alphabet, Apple, Amazon, Meta Platforms, Netflix, Nvidia and Tesla — that have powered most of this year’s stock market gains have had a rough few weeks, shedding more than $2.3 trillion since a July peak.
Weak economic data from the United States and a mixed set of earnings from the tech giants have prompted