NEW YORK — The Magnificent Seven technology stocks suffered their steepest collective daily decline in over two years on July 23, driving the Nasdaq Composite down 2.2 percent to 25,138, its largest single-day drop since March.
Tesla Inc. led the selloff, plummeting 14.5 percent to $319.69—its worst single-day loss since October 2025—wiping out recent gains. Alphabet Inc. (GOOGL) fell 7.1 percent to $317.69, erasing more than $70 billion in market capitalization. Amazon.com Inc. (AMZN) dropped 4.6 percent to $233.66, and Meta Platforms Inc. (META) declined 3.4 percent to $606.10. Those losses pushed the S&P 500 down 1.2 percent to 7,408.
The selloff accelerated as investors weighed persistent inflation and a hawkish Federal Reserve. Fed Chair Kevin Warsh has said rate cuts are off the table until inflation shows a sustained path to 2 percent. Higher rates compress the present value of future earnings, hitting high-growth technology stocks hardest.
Investors rotated out of large-cap tech into lower-beta assets. The Dow Jones Industrial Average fell 1.0 percent to 51,712, while the Russell 2000 dropped just 0.7 percent to 2,940—a narrower loss that points to selective de-risking rather than a broad market retreat.
Microsoft Corp. (MSFT) declined 2.2 percent to $381.58, and Apple Inc. (AAPL) closed down 1.3 percent at $321.66. Nvidia Corp. (NVDA), a bellwether for AI infrastructure spending, dipped 1.6 percent to $208.76.
