The broader technology sector weakened after renewed geopolitical tensions in the Middle East weighed on investor sentiment.
- Tesla and Alphabet led the selloff, with Tesla dropping more than 13% following earnings and Alphabet falling over 6%.
- Tesla remains the weakest-performing ‘Magnificent Seven’ stock this year, while Apple continues to lead year-to-date gains.
- Retail sentiment on Stockwits deteriorated across several mega-cap technology names, including Tesla, Meta, Nvidia, and Apple.
The Roundhill Magnificent Seven ETF (MAGS) was on track to post its biggest single-day decline of the year on Thursday, caught in a broad technology selloff led by steep losses in Tesla (TSLA) and Alphabet (GOOG, GOOGL).
The weakness extended across the broader market. The Invesco QQQ Trust (QQQ), which tracks the Nasdaq-100, fell 1.8% in midday trading to lead losses among the major U.S. equity benchmarks. The SPDR S&P 500 ETF (SPY) slipped 1.1%, while the SPDR Dow Jones Industrial Average ETF (DIA) declined 0.9%.
Markets came under pressure after President Donald Trump issued fresh warnings to Iran following attacks by Houthi rebels on Saudi Arabian oil tankers in the Red Sea, amid rising geopolitical tension between the two nations.
MAGS’ price slipped around 4.4% in midday trade, dropping to its lowest level in nearly a month. Retail sentiment around the ETF dropped to ‘bearish’ from ‘neutral’ territory over the past day.
Tesla, Alphabet Lead The Decline
Tesla and Alphabet accounted for much of Thursday’s weakness among the ‘Magnificent Seven.’
TSLA’s stock plunged more than 13% after its latest earnings report prompted analysts to lower price targets and call for clearer progress on Robotaxi commercialization and Optimus development before assigning greater value to the company’s AI ambitions.
GOOGL’s stock dropped more than 6%, adding further pressure on the ETF. Both stocks ranked among the most-discussed tickers on Stocktwits at the time of writing.
Retail sentiment on Stocktwits around Tesla weakened sharply, falling to ‘neutral’ from ‘extremely bullish’ territory over the past day. Alphabet, however, continued to hold ‘extremely bullish’ sentiment despite the decline.
The remaining mega-cap technology stocks also traded lower. Amazon (AMZN) declined by more than 4%, Meta Platforms (META) lost over 3%, and Microsoft (MSFT) fell by more than 2%. Meanwhile, Nvidia (NVDA) and Apple (AAPL) were relatively sheltered, falling around 1% each.
Tesla Leads Year-To-Date Losses
Tesla remains the weakest-performing member of the ‘Magnificent Seven’ this year, with shares down nearly 30%. MSFT’s stock has fallen more than 20%, while META’s stock is lower by about 6%.
The rest of the group continues to show positive returns for 2026 despite Thursday’s selloff. AAPL stock remains the strongest performer, gaining roughly 18% year to date. NVDA stock has advanced by more than 12%, while Alphabet is still up about 2%. AMZN’s stock has posted a modest gain of around 1.5%.
Retail Sentiment Turns More Cautious
Stocktwits data showed retail sentiment weakening across several of the group’s largest constituents. Sentiment around Meta fell to ‘bearish’ from ‘neutral’ territory, while sentiment around Nvidia slipped to ‘neutral’ from the ‘bullish’ zone, and sentiment around Apple eased to ‘bullish’ from ‘extremely bullish’.
Retail sentiment for Microsoft remained in ‘neutral’ territory, while Amazon continued to hold ‘bullish’ sentiment despite the stock’s decline.
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