Wall Street’s ’Magnificent Seven’ pack hits six-month low: Tesla drops 6%, Alphabet sinks 4% after Wiz acquisition

Wall Street’s elite ‘Magnificent Seven' group of stocks resumed their downward trend amid a selloff, dragging down the US frontline indices. Investors are also gearing up for Wednesday’s US Federal Reserve decision that will likely bring an assessment of US President Donald Trump’s tariffs' impact on the US economy.

Equities halted a back-to-back rally from technically oversold levels. The cohort of US tech megacaps dubbed ‘Magnificent Seven’ hit the lowest since September 2024, a six-month low, with Tesla Inc. down six per cent and Nvidia Corp. falling 3.5 per cent in the run-up to chief Jensen Huang’s keynote speech.

Also Read: Wall Street’s ‘week of drama’ on Trump chaos: Tariff hikes to Mag 7 group—5 key factors that moved US stock market
 

Wall Street's ‘Magnificent Seven’ drag indices lower

Tesla was one of the heaviest weights on the market after falling 6.1 per cent. The electric-vehicle maker’s stock has been struggling on worries that it will lose sales because of anger at its chief executive officer (CEO), Elon Musk, who has been leading efforts to cut spending by the US government.

Electric vehicle (EV) rivals, meanwhile, continue to chip away at its business. China’s BYD on Monday announced an ultra-fast charging system that it says is nearly as quick as a gasoline fill-up. Alphabet sank four per cent after owner Google said it would buy cybersecurity firm Wiz for $32 billion. 

This would be the tech giant's most expensive purchase in its 25-year history, and it could boost the in-house cloud computing amid burgeoning artificial-intelligence (AI) growth. The drop for Big Tech stocks continues a trend that has taken hold in the market's recent sell-off.

Stocks whose momentum had earlier seemed unstoppable have since dropped sharply following criticism that they had simply grown too expensive. AI stocks have been among the biggest losers amid Wall Street's volatility over economic uncertainty dragged by Donald Trump's tariff hikes and global trade war.

Also Read: US Fed to unveil policy verdict amid ‘stagflation risk’, chief Jerome Powell eyes rate pause: 5 key things to know

Wall Street Today

On Tuesday, all three major US stock indexes were lower in early trading, with weakness in tech-related megacap stocks dragging the tech-laden Nasdaq down the most. The Dow Jones Industrial Average fell 234.13 points, or 0.56 per cent, to 41,606.96, the S&P 500 slid 59.72 points, or 1.05 per cent, to 5,615.40 and the Nasdaq Composite slipped 324.68 points, or 1.82 per cent, to 17,483.99.

A new round of Israeli missile attacks on the Gaza Strip, killing over 400 people, brought Middle East tensions from a simmer to a boil on Tuesday, even as US President Donald Trump and Russian President Vladimir Putin were expected to discuss the near-terms of the potential end to Russia's war on Ukraine.

Also Read: ’Magnificent Seven’ Review: Nvidia soars 183% YTD to lead US tech pack in 2024; Meta ranks second; Full list

The US Federal Reserve is slated to convene for its two-day monetary policy meeting, which is expected to culminate in the central bank leaving its key interest rate on March 19 where it is until further inflation progress is made and gauge the economic uncertainty.

With inputs from Associated Press, Bloomberg, and Reuters
 

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