On Thursday, July 23, 2026 (Thursday), the US stock tech “Magnificent 7” (Magnificent 7: Apple, Microsoft, Alphabet, Amazon, Nvidia, Meta, Tesla) suffered the most brutal one-day selloff since the April 2025 “tariff storm.” A total market value of about $797 billion was wiped out, the Mag 7 index plunged 4.8%, the S&P 500 fell 1.21%, and the Nasdaq dropped 2.15%.

The direct trigger was two earnings reports that tore open worries about an “endless AI money-burning pit.” Alphabet’s second-quarter capital expenditures surged to $45 billion; full-year guidance was raised to as much as $205 billion. Free cash flow turned negative for the first time since going public. The stock price fell 7.13%, shrinking by more than $290 billion in a single day. Although Tesla’s revenue beat expectations, its profits and EPS fell sharply short; Musk said 2026 will be a “capex-heavy year,” sending the stock down 14.52% and wiping out about $200 billion in market value. The other five were no exception: Amazon -4.57%, Meta -3.36%, Microsoft -2.24%, Nvidia -1.56%, and Apple -1.30%.

On the macro front, it was a squeeze from “oil prices breaking $100 + a renewed rate-hike wave.” The escalation of tensions between Iran and the U.S. and Houthi attacks on Red Sea oil tankers pushed Brent crude above $100, while the 10-year US Treasury yield broke 4.7%. The market pushed the probability of the Federal Reserve raising rates in September from 68% up to 80%, and high-valuation, long-duration tech stocks were hit first.

These $797 billion are not a normal pullback, but a repricing of the clock for “AI investment—returns.” For the past three years, they expanded valuations on narratives; now they have to deliver on profits. The Magnificent 7 have retreated 11% from their May highs and have cumulatively lost about $2 trillion, but the AI infrastructure cycle hasn’t turned back. It looks more like a trust squeeze during a super bull run than an endgame.