Market Turmoil: Magnificent 7 Stocks Plunge as Big Tech Giants Stumble

The Nasdaq 100's Magnificent Seven stocks, including Apple, Amazon, Tesla, Nvidia, Microsoft, Meta, and Alphabet, closed in the red on Monday due to rebalancing by the Nasdaq committee. The rebalancing resulted in significant selling of these stocks, with Apple, Microsoft, Amazon, Alphabet, Nvidia, and Meta experiencing downweights totaling approximately $13 billion. Investment funds tracking the index changes were forced to adjust their portfolios, leading to a poor day of relative performance. The selling may continue as other committees may follow suit in the new year.