Big Tech's 2025 Slump: Magnificent Seven Now Lag the Broader Market

Tesla, Nvidia, and others lead tech sector decline, reversing gains from last year's standout performance

Summary
  • Magnificent Seven tech giants fall behind S&P 500 in 2025 amid inflation, tariffs, and earnings headwinds
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After dominating markets in 2024, the so-called “Magnificent Seven” tech giants are now falling behind the broader market in 2025 — a sharp turnaround that's catching investor attention. As of this week, all seven companies are underperforming the S&P 500, which itself is down 13.1% year-to-date.

Monday's trading session added more pressure, with each of the seven stocks finishing in the red, deepening concerns across Wall Street as the broader market sell-off drags on.

Here's how they're doing so far this year:

What's driving the slump? A mix of rising inflation concerns, fears over expanding tariffs, and underwhelming earnings growth has dampened enthusiasm around tech. After a blockbuster 2024, investors are recalibrating their expectations — and the biggest names in tech aren't immune to the shift.

Disclosures

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