Tech giants face decline as investor focus shifts in 2025
ft.com —
The "Magnificent Seven" tech stocks, including Tesla and Microsoft, have seen a decline in 2025 after strong gains in 2023 and 2024. The S&P 500 has only risen 4% this year, indicating a shift in investor focus. Investors are moving away from these major tech companies, with a Bloomberg index for the group gaining just 1% in 2025. In contrast, sectors like banking and healthcare have attracted significant investment, with US bank stocks seeing nearly $2 billion in inflows recently. Additionally, privately held tech companies, dubbed the "Private Magnificent Seven," have gained popularity, with their valuations rising 40% since July. This trend suggests a broader market shift away from the previously dominant tech giants.