The “Magnificent 7” tech stocks saw huge losses in the past week as President Trump’s threatened tariffs stoked volatility in the markets – but these initial shocks are a “textbook correction” that will likely ease as permanent policies lock into place, experts told The Post.
The group of tech giants – Tesla, Nvidia, Alphabet, Meta, Amazon, Apple and Microsoft – have shed more than $1.5 trillion off their combined valuation since the start of 2025 after enjoying huge gains last year.
“With markets hitting all-time highs in 2024, there was bound to be some sort of pullback, especially on the high flying magnificent seven stocks,” Ted Jenkin, co-founder of oXYGen Financial, told The Post.
Stocks in the Mag 7 typically trade higher based on future earnings promises, so concerns over a trade war and potential recession have “battered them at an abnormal rate,” Jenkin added.
Half of the stocks, including Nvidia, Tesla, Microsoft and Amazon, started to recover on Tuesday.
Some of the tech giants are being hit doubly hard with their own unique deterrents, like protests against Tesla owner Elon Musk and the Department of Justice’s antitrust efforts targeting Google.
“We clearly need stable Trump policy and investors need to know the rules of the game,” Wedbush analyst Dan Ives wrote in a note on Tuesday, “but that will all happen over the coming months and we do not believe this dramatically changes the trajectory of the AI Revolution over the coming years.”
Shares in Musk’s Tesla have tanked nearly 40% so far this year, easily suffering the worst fall among the bunch.
Investors have grown wary over Musk’s ability to split his time between his companies and the Department of Government Efficiency, especially after Musk admitted on Monday that he was running his companies alongside the government task force “with great difficulty.”
Meanwhile, electric vehicles have been set aflame and protests have broken out at Tesla showrooms across the country as demonstrators decry having a billionaire in the White House.
“There has been little to no sign of Musk at any Tesla factory or manufacturing facility the last two months and perception has become reality for Tesla shares,” Ives said, as he urged Musk to “step up” at Tesla.
The stock showed some signs of rebounding on Tuesday, ticking up about 4%.
Shares in Jensen Huang’s chipmaker Nvidia plummeted about 20% since the start of 2025 – the next highest fall in the group.
Alphabet was also hit particularly hard, with its stock slumping about 12% after the Department of Justice confirmed it is pursuing a breakup of the online search giant’s monopoly.
Mark Zuckerberg’s Meta emerged as the only Mag 7 stock to avoid a dip so far this year after reporting buoyant earnings, including jumps in its sales and income.
Its stock has risen 2% so far this year, as the tech giant – which relies more on digital advertising and less on the sale of physical goods – has also avoided some of the same tariff worries that hurt fellow Mag 7 members.
Amazon, Apple and Microsoft shares have also suffered losses since the start of 2025 – down 9.9%, 9% and 8.3%, respectively.
But the large losses appear to be a “textbook correction,” according to John Creekmur, chief investment officer at Creekmur Wealth Advisors.
“The speed at which markets have declined over the past few days and weeks is a key sign that we are in a correction and not a bear market,” he said in a note on Tuesday.
“Corrections tend to be very short in duration and fast moving, while bear markets take longer to play out and their moves are not as noticeable over the very short term,” he added.
Some have taken the opposite approach and sounded the alarms in regards to market volatility.
“The gambit by Trump is not paying off, the market is clearly aware of the haphazard approach and the economic damage tariffs can do,” Mahoney Asset Management CEO Ken Mahoney told The Post, “and it might be what pushes the economy into a recession. So the market is not wrong. It’s not overreacting.”
