Yesterday, U.S. financial markets experienced significant declines, driven by increasing investor skepticism toward U.S. policy and economic stability. The S&P 500 (SPX) dropped 2.4%, now 16% below its recent peak, while the Dow Jones Industrial Average (DJIA) plummeted 971 points, or 2.5%, and the Nasdaq (NDAQ) fell 2.1%. At the same time, steep losses among the ‘Magnificent Seven’ stocks dealt a heavy blow to the tech-heavy Nasdaq, amplifying the day’s sell-off.
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AI chipmaker Nvidia (NVDA) led top technology stocks lower on Monday, down nearly 5%, while others in the magnificent seven club also saw red. The iPhone maker, Apple (AAPL), and Meta Platforms (META) fell roughly 3% each. Microsoft (MSFT) and Alphabet (GOOGL) each dipped about 2%. Meanwhile, consumer giant Amazon (AMZN) declined nearly 4% and Tesla (TSLA) tumbled around 7%.
The Roundhill Magnificent Seven ETF (MAGS), which tracks top tech giants, dropped more than 3% in yesterday’s trading. So far this year, it’s down nearly 21%.
Market Rattled by Trump’s Pressure on Powell
President Donald Trump’s escalating criticism of Federal Reserve Chair Jerome Powell, labeling him a “major loser” and urging immediate interest rate cuts, has rattled markets. This escalating conflict has raised concerns over the central bank’s independence.
The market fears that Powell’s ability to act independently could be compromised, which might weaken the Fed’s credibility at a crucial time. As Jed Ellerbroek, a portfolio manager at Argent Capital Management, pointed out, economies with independent central banks tend to perform better, with stronger growth and “lower inflation.”
His warning that political influence over the Fed is “a really bad idea” underscores why Wall Street is uneasy, especially with Trump openly targeting Powell ahead of key policy decisions.
Which Magnificent Seven Stocks Offer the Most Upside?
Using the TipRanks’ Stock Comparison Tool for Magnificent 7 Stocks, analysts see the greatest upside in NVDA stock forecast, projecting a potential gain of almost 74.7%. Amazon follows with a forecasted 50.48% upside. Despite a neutral outlook on Tesla, analysts still expect 30% growth, largely driven by the stock’s recent slump.
