The Magnificent 7 stocks experienced significant declines on Monday as the tech sector and broader market faced a severe sell-off.
While the stocks have begun to recover slightly following the opening bell, Apple (NASDAQ:AAPL) is currently down more than 5%, while NVIDIA (NASDAQ:NVDA) has fallen more than 9% after dropping as much as 13% premarket.
Alphabet (NASDAQ:GOOGL) and Amazon (NASDAQ:AMZN) have also seen losses, currently down 3.9% and 5.5%, respectively. Furthermore, Meta Platforms (NASDAQ:META) and Microsoft (NASDAQ:MSFT) both dropped 4.6% and 4%, respectively, while Tesla (NASDAQ:TSLA) is trading 8.4% lower.
This broad-based sell-off reflects ongoing concerns about the stability of the tech sector and the overall market environment following economic data last week, with US jobs numbers disappointing.
The downturn in these major stocks follows the market uncertainty exacerbated by weaker-than-expected economic data and geopolitical tensions.
Furthermore, the declines in these high-profile stocks highlight the volatility in the tech sector, where high valuations and market sentiment can lead to sharp corrections.
Analysts are closely watching these developments, with the current environment raising questions about the resilience of tech stocks and broader market stability.
However, analysts at Evercore ISI said in a note Monday morning that "corrections are normal in bull markets" and that "'Air Pockets'" happened often in the Internet Boom of 1995-2000."
They believe 2024's AI "Air Pocket" is an "opportunity to gain exposure to long-term secular growth trends."