Big Tech Pain Is Mounting as Risk-Wary Traders Dump Winners

For some time now, there have been plenty of reasons to worry about Big Tech stocks. Stretched valuations after a big run up, heavy spending on artificial intelligence and lofty expectations for future growth. For months, though, none of it seemed to matter.

Something changed in the past week, however. The so-called Magnificent Seven stocks are sliding. A Bloomberg Index tracking the cohort is down almost 12% off its peak, falling into correction territory after it powered the Nasdaq 100 to a record on Feb. 19. Of the seven, only Meta Platforms Inc. is in the green for this year.