Why the Magnificent Seven Stocks Just Had Their Worst Month and Quarter on Record

The Magnificent Seven declined on Monday, capping off the worst month and quarter on record for the group of big tech stocks that account for more than a quarter of the S&P 500’s market value. 

The Roundhill Magnificent Seven ETF (MAGS) dropped 0.4% on Monday. The ETF—composed of Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Alphabet (GOOG), Amazon (AMZN), Meta (META) and Tesla (TSLA)—lost about 10.5% of its value in March, its worst month since it launched in April 2023. With March’s losses and February’s 8% decline, the fund is down more than 15% since the start of the year.

While each of the stocks in the Mag Seven is trading in the red for the year, one stands out for its particularly poor performance: Tesla shares have fallen more than 35% so far this year amid slowing sales and investor concerns about CEO Elon Musk’s political involvement. Nvidia, the group’s next-worst performer, shed 20% over the same period. The rest of the group is down between 2% (Meta) and 18% (Alphabet) since the start of 2025. 

The Mag Seven’s year got off to a rough start when a surprisingly efficient AI model from Chinese start-up DeepSeek called into question the economic assumptions that underpinned Big Tech’s AI rally. Moderating earnings growth and lingering doubts about the payoff of AI infrastructure investments have impeded the group’s recovery from January’s DeepSeek rout. The Mag Seven, some of the most widely held stocks in the world, are also under pressure from President Trump’s tariff threats, which have spooked investors and driven some to flee stocks for safe havens like gold and Treasurys.

The Magnificent Seven was the driving force behind the U.S. stock market’s strength in the past two years. The stocks accounted for more than 50% of the S&P 500’s return in both 2023 and 2024. 

The group’s dominance over that period is exactly why some market watchers were wary of last year’s rally. The Mag Seven’s massive market capitalizations—ranging from $830 billion to $3.3 trillion—make them the most influential stocks in the S&P 500, and their influence this year has been negative. The Mag Seven fell into a correction in February, weeks before the S&P 500. Whereas the equal-weight S&P 500—in which a 1% gain for the index’s smallest company, Caesar’s Entertainment (CZR), has the same impact as a 1% gain for its biggest, Apple—still hasn’t corrected. (Though it came very close in early March when it closed 9.8% off its December high.)