Big Tech Stocks Hit Bear Market Territory as Magnificent Seven Era Ends

Six of the seven Big Tech stocks (Nvidia, Alphabet, Microsoft, Amazon, Meta, and Tesla) have fallen into bear market territory, losing at least 20% of their value. Microsoft and Meta have led the way lower, with Microsoft experiencing its worst quarterly performance since 2000. Only Apple has escaped this distinction, with a peak-to-trough decline of 14%. The stocks' earnings growth has been strong, but valuation multiples have compressed significantly, with four of the seven now trading below their historical norms. The rotation away from high-flying tech has accelerated, marking the end of the magnificent seven's era of effortless outperformance.