The 'Magnificent 7' Lost 311 Trillion KRW in Market Cap in One Day... Only Nvidia Rose

The market capitalization of the so-called 'Magnificent 7,' the major tech stocks driving the U.S. New York Stock Exchange, reportedly evaporated by about 311 trillion won in a single day. Amid recent bubble concerns surrounding the Magnificent 7 in some corners of Wall Street, the six companies excluding AI leader Nvidia all closed the session in decline.

[Image source=Reuters Yonhap News]

MarketWatch reported on the 5th (local time) that Tesla, Apple, Microsoft (MS), Amazon, Meta Platforms, and Google Alphabet closed lower in the New York Stock Exchange, causing the Magnificent 7's daily market capitalization to shrink by $233 billion (approximately 311 trillion won). This marks the third-largest loss so far this year. The peak was $375 billion on January 31. MarketWatch described it as a "not-so magnificent Tuesday."

By stock, Tesla's shares fell 3.93% amid concerns over slowing electric vehicle demand and negative news from China and Germany. Apple also slid 2.84% as its market share in the Chinese smartphone market declined. MS's stock dropped 2.96%. Amazon fell 1.95%, and Meta declined 1.60%. Google Alphabet, still affected by the Gemini error, dropped 0.31%. However, Nvidia was the only one among the Magnificent 7 to close slightly higher (+0.86%).

Peter Cardillo, Chief Market Strategist at Sparta Capital Securities, described the situation as "a retreat," adding that "how far it will go depends on the circumstances." He noted that market movements could change depending on Federal Reserve Chairman Jerome Powell's congressional speech scheduled for the next day and the employment report to be released this week. Investors are expected to seek hints about the future direction of monetary policy through these events.

On the other hand, Michael Sansotera, Chief Investment Officer at Sylvant Capital Management, stated, "This is not a panic sell-off," but rather "a normal movement seen in a strong bull market."

Recently, some on Wall Street have raised bubble concerns, saying the stock price concentration on the Magnificent 7 is excessive. Mike O'Rourke, a veteran Wall Street strategist who coined the term, previously said, "The M7 era is effectively over," and that it will be difficult for them to drive the market as before. Dan Niles, a renowned tech stock analyst and founder of Satori Fund, referred to Nvidia, Meta, MS, and Amazon?excluding Apple, Tesla, and Alphabet from M7?as the "Fantastic 4."

Meanwhile, the New York Stock Exchange showed broad weakness due to the sluggishness of tech stocks including Apple. The Nasdaq Index, which is tech-heavy, closed down 1.65% compared to the previous session.

This content was produced with the assistance of AI translation services.