US tech 'Magnificent Seven' stocks lost nearly $800 billion in market cap in a single day, with Tesla down 15% and Alphabet down 7.1%, as AI spending concerns hit hard.

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The 'Magnificent Seven' US tech stocks suffered a historic sell-off on Thursday, losing nearly $800 billion in combined market capitalization in a single day. The decline, the largest since April 2025, brought the group's total loss from late May highs to about $2 trillion. Tesla plunged 15% and Alphabet fell 7.1%, leading the rout after their earnings reports raised concerns over heavy spending on artificial intelligence infrastructure. Investors are increasingly questioning whether the massive investments in AI will generate sufficient returns, as Alphabet raised its capital expenditure guidance and Tesla outlined plans to boost spending. The sell-off also dragged down other tech giants, with Microsoft, Amazon, and Meta set to report earnings next week, keeping the focus on AI monetization prospects.