Big Tech stocks were hammered this past week amid growing fears that rising inflation will keep interest rates higher for longer, while company-specific headwinds also weighed on the sector.
Collectively, the “Magnificent Seven” megacap stocks erased more than $850 billion in market value over the past week.
Meta (META) posted its worst week since October 2025, down more than 11% as Wall Street continued to grapple with the company’s loss in a landmark social media lawsuit earlier this week.
A jury found Meta and YouTube parent Google (GOOG, GOOGL) negligent for failing to protect young users on their platforms. Alphabet closed out the week down nearly 9%.
Microsoft (MSFT) ended the week 6.5% lower and is on track for its worst quarter since 2008 as software stocks have been particularly hard-hit.
Nvidia (NVDA) and Amazon (AMZN) fell roughly 3% for the week, while Tesla (TSLA) dropped nearly 2% over the five-day span.
Semiconductor stocks rebounded on Friday, but Sandisk (SNDK) and Micron Technology (MU) still ended the week in the red after sharp losses on Thursday.
The sell-off followed Alphabet Inc.’s release of new research outlining an algorithm designed to reduce AI memory usage, a development that rattled memory and broader semiconductor stocks.
Growth stocks were hit this week as bond yields rose amid expectations of higher inflation from surging oil prices, with investors anticipating the Federal Reserve will not be able to cut rates this year, as previously expected.
The only Magnificent Seven stock to end the week slightly higher was Apple (AAPL), following a report this week that it plans to open its Siri voice assistant to rival artificial intelligence services beyond its current partnership with OpenAI’s (OPAI.PVT) ChatGPT.
Daniel Howley contributed reporting.
Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre.
