Why Magnificent Seven Stocks Just Had Their Worst Day on Record [Video]

The Magnificent Seven tumbled on Wednesday after earnings reports from Tesla (TSLA) and Alphabet (GOOGL) raised concerns about slowing earnings growth at America’s tech titans. 

Shares of the Roundhill Magnificent Seven ETF (MAGS) fell 6.1% Wednesday, their largest daily decline since the ETF launched in April 2023. Wednesday’s rout plunged the index into correction territory.

The tech giants, which were cumulatively worth about $16 trillion as of Tuesday’s close, weighed heavily on the major indexes. The S&P 500 slumped 128 points, its biggest drop since September 2022; the Mag Seven accounted for approximately 85 of those points.

Earnings season got off to a rough start for the group Tuesday afternoon when Tesla missed quarterly earnings estimates. The electric vehicle maker reported a 45% decline in profit as artificial intelligence (AI) development costs increased and average vehicle sales prices declined. Tesla shares tumbled more than 12% Wednesday as Wall Street parsed the earnings and digested a …