Magnificent 7 loses $1 trillion in tech stock plunge

U.S. stocks suffered a severe sell-off on Thursday as fears of an artificial intelligence slowdown triggered a broad market rout, with the tech-heavy Nasdaq Composite falling over 5% into correction territory alongside the small-cap Russell 2000. The Dow Jones Industrial Average dropped more than 1,800 points, or over 3%, while the S&P 500 pulled back more than 4%, erasing Wednesday's postelection gains. The "Magnificent Seven" tech giants lost over $1 trillion in combined market value, led by Nvidia's $440 billion decline as its stock fell more than 9% and turned negative for the year. The CBOE Volatility Index surged 11.57 points to its highest level since March 31, while all 11 S&P 500 sectors finished negative, with information technology posting its worst day since March 2020. Declining stocks outpaced advancers by nearly 6-to-1 on the New York Stock Exchange and 5-to-1 on the Nasdaq. More than 34% of S&P 500 stocks now sit at least 20% below their 52-week highs, including major names like Alphabet, Nvidia, and Oracle, while the Technology Select Sector SPDR Fund saw trading volume triple its 30-day average.