“Magnificent 7” Wipe Out $450 Billion in Single-Day

U.S. equity markets closed sharply lower on Thursday as investors intensified their retreat from technology stocks, erasing roughly $450 billion in market value from the so-called “Magnificent Seven” in a single session.

The broad-based selloff pushed major indices into deeper correction territory, with technology once again at the epicenter of market anxiety.

The Dow Jones Industrial Average fell 1.3%, or 670 points, marking its steepest daily loss in three weeks and slipping back below the 50,000-point threshold.

The Nasdaq Composite dropped 2%, extending its losing streak to three consecutive sessions and putting it on track for a fifth straight weekly decline. The index is down 1.9% so far this week.

Meanwhile, the S&P 500 declined 1.6%, surrendering all of its gains for the year to date.

Investor sentiment was further rattled after a disappointing quarterly report from Cisco Systems, which reignited concerns about broader weakness in the technology sector. Transportation stocks also faced pressure amid growing debate about how artificial intelligence could reshape cost structures and demand patterns.

The steepest damage was concentrated in the largest U.S. technology names, collectively known as the “Magnificent Seven.” The group shed approximately $450 billion in market capitalization in one day as earnings season revived investor unease over soaring capital expenditure plans.

Amazon fell 2%, extending its losing streak to eight sessions and closing at its lowest level in roughly nine months.

Apple plunged 5%, marking its sharpest one-day decline in 10 months.

Market attention has increasingly focused on aggressive spending plans tied to artificial intelligence infrastructure. Amazon, Alphabet, Meta Platforms, and Microsoft are expected to collectively spend around $650 billion this year in the race to dominate AI technologies, a scale of investment that is prompting fresh scrutiny from shareholders concerned about near-term returns.

The S&P 500 software sub-index retreated after briefly recovering from last week’s sharp drop. Among the biggest losers was AppLovin, whose fourth-quarter results disappointed investors. The digital marketing platform has faced mounting pressure this year amid intensifying competition.

Shares of personal computer manufacturers also recorded heavy losses after Lenovo warned of shipment pressures stemming from memory chip shortages.

Dell Technologies plunged 9%, marking its largest single-day drop in 10 months, while HP Inc. fell 5%, closing at its lowest level in five years.

The market’s reaction underscores a broader reassessment of technology valuations as investors weigh the long-term promise of artificial intelligence against its immediate cost burden.

With the Nasdaq heading toward its fifth consecutive weekly decline and the S&P 500 now back to flat for the year, Thursday’s session signaled that enthusiasm for AI-driven growth is being tempered by growing concerns over capital intensity, profit margins, and earnings durability.