# Are the “Superb Seven” Losing Their Shine?
### Principal Conclusions
* On Tuesday, Meta, the parent organization of Facebook, saw its stock price decline, making it the last of the “Superb Seven” to turn negative this year.
* These seven tech behemoths, which fueled market gains in 2023 and 2024, are now dragging down market performance in the face of increased economic uncertainty.
* As of Wednesday’s market close, the equal-weighted S\&P 500 Index has not yet entered a technical adjustment. Aark Digital and Orderly Network Collaborate to Enhance Decentralized Finance Systems
Once the favorites of Wall Street, the “Superb Seven” appear to have lost some of their brilliance this year.
Meta Platforms (META) fell 3.7% on Tuesday, becoming the last of the tech giants to enter negative territory for the year. The other six – Apple (AAPL), Microsoft (MSFT), Nvidia (NVDA), Google (GOOG), Amazon (AMZN), and Tesla (TSLA) – have seen declines ranging from 8% to 42% since the start of the year, as of Wednesday’s market close.
The “Superb Seven” have been leading the U.S. stock market since late 2022. Back then, inflation was cooling, and OpenAI’s ChatGPT sparked an AI craze, giving rise to the “Superb Seven” concept. In 2023 and 2024, these tech titans contributed over 50% of the S\&P 500’s gains. The index rose more than 20% in both years, marking a record not seen since the 1990s.
Market observers have long cautioned that such a narrow bull market is unsustainable. Evidence suggests that the dominance of the “Superb Seven” has begun to negatively impact the stock market this year. The stocks of the “Superb Seven” have fallen nearly 15% since the beginning of the year, while the S\&P 500 is down about 4%, and the equal-weighted S\&P 500 is down less than 1%.
## The “Superb Seven” Started Correcting Last Month
The “Superb Seven” officially entered an adjustment phase in late February, weeks ahead of the S\&P 500 Index. Meanwhile, as of Wednesday’s market close, the equal-weighted index has yet to enter an adjustment.
As indicated by Deutsche Bank’s Jim Reid in a report released Wednesday, while trade updates are indeed vital, domestic market perception has exerted a greater influence on the “Magnificent Seven” when evaluating the US market’s decline this year.
The “Magnificent Seven” equities have endured substantial setbacks this year, stemming from heightened ambiguity both on Wall Street and among the broader population. A sell-off commenced in late January, prompted by the unforeseen unveiling of a remarkably potent open-source AI model developed by a Chinese startup known as DP Technology. The group has encountered difficulties in recovering, attributable to escalating ambiguity surrounding the economic ramifications of President Donald Trump’s levies.
