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'Magnificent 7' stocks erase $797 billion in market value in worst day since April 2025
(finance.yahoo.com)
this post was submitted on 23 Jul 2026
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The headline is factually accurate, but not nearly as dire as it suggests. The S&P500, of which 35% is the "magnificent 7", dropped but a total of 1.21%. When you zoom in on a single stock where the effect is magnified like Nvidia (NVDA), it dropped by 1.56%, so I wouldn't consider that a selloff.
you see this all the time now. shock at one or two percent drops and recognition of double digit gains but the expectation is constant growth. The bubble is insane.
Well, historically over a long enough time horizon, it always has grown.
Here's the S&P500 since its inception in 1957:
Those gray vertical bars represent significant drops. You can see even with bubble bursting, it has always not only recovered but dramatically increased even more.
So yes, there's probably an AI bubble in the stock market right now, and yes it will likely burst at some point, but even after it does, the market will likely recover and eventually be even stronger.
yeah that is glossing over things that happen in a day, week , month, and even year. Before 2k and even 08 you had good weeks and bad. yeah over a long stretch if grows but its never been like its been this millenia. now its like because you so rarely have a down week a few percent is big news. its the same with coporate profits. single digits were normal and double was big news. now double is not meeting expectations and you actually see triple at times. its insane.
Sure it has. Historically its grown even faster at certain times. Check out the recover after the great depression for a fast and explosively high growth (higher that we have today). The 1990s had an even higher and longer bull run until the dot.com bubble burst.
I think you hit on the key term "big news". Volatility is part of markets. Its built in. The reason you're hearing about a 50 basis point market move as a headline is there are dozens of news organizations that have to report on something and the the headline "Markets today were okay like they were yesterday" doesn't get attention.
im not talking about that. Im talking about bussiness as usual. The market should lose regularly throughout the year. Its a normal type cycle. It should also gain. Most years it should gain but some it should lose. Loss weeks and years are both far rarer than in the past.
Where does this idea come from? What is the basis for expected losses you're pointing to?
70's, 80's, 90's. Its just how the market used to be. News every evening would mention if it was up or down and down was not uncommon. every friday they would cap off the week with if it was up or down. again. down was not that uncommon.
Oh sure, daily volatility. That's still very much a thing. Here's the S&P500 over the last month with lots of "down" days:
So I'm confused about your statement that there aren't "down" days or weeks. Or even "down" months for that matter. Feb 2026 was a down month, so was March 2026. March, by itself was a 5.36% drop from the month prior for the S&P500. April and May were up over the prior month, but then June was lower than May. So that volatility in the micro view is still very much a thing. Over the longer time horizon, the trend is "up" though. That was the point I was making.
Having this volatility on the day, week, or month basis was very common prior to Jan 1 2000, and is still common now. So what point are you making on that?
im not saying there are absolutely no down days although I get I was not clear. More that they are not as common and small dips are reported like they are shocks. Like in 2000 a drop of 1% on the dow would be under 100 points and just looked at as a typical down day. would have to get closer to 5% to make the drop all that news worthy.