Seven of the biggest companies that have powered the majority of the S&P 500 Index’s gains over the past two years are not having a great start to 2025 — plunging into correction territory and erasing approximately US$1.4 trillion in value.

The Bloomberg Magnificent 7 index, an equal-weighted gauge that consists of Apple Inc., Nvidia Corp., Microsoft Corp., Alphabet Inc., Amazon.com Inc., Meta Platforms Inc. and Tesla Inc., has fallen about 10% from a December high, passing the threshold that meets the definition of correction.

Elon Musk’s Tesla has been the biggest laggard for the index in the period, followed by Microsoft and Alphabet. While the electric-vehicle maker had initially surged following Donald Trump’s electoral victory in early November, the stock has sharply sold off since. Shares in Tesla have been bogged down by a string of bad sales reports and heightened competition from Chinese rivals like BYD Co.

However, shares of the Facebook-owner have bucked the trend this year as investors endorse the social media giant’s AI strategy. Meta recorded its longest ever winning streak in February, rising for 20 consecutive sessions and adding more than $320 billion in the process.

©2025 Bloomberg L.P.