Magnificent 7 stocks fall into the red for 2026 after weak June

The U.S. megacap tech group known as the Magnificent Seven ended June with steep losses, pushing the basket into negative territory for the year. The companies — Microsoft, Nvidia, Alphabet, Apple, Meta, Tesla and Amazon — lost about $2 trillion in combined market value during the month as investors reassessed their outlook for the group. A key factor behind the decline is the heavy spending on artificial intelligence. Several of the companies have shifted from generating large free cash flow to committing more capital to AI infrastructure, including hardware and data centers. That has raised questions among investors who had expected stronger buyback support and steadier returns. Microsoft had the largest monthly drop, falling 17% after saying its 2026 capital spending could reach $190 billion. Amazon and Meta also posted doubledigit losses, while Apple, Alphabet, Nvidia and Tesla all declined. The weak performance contrasted with semiconductor stocks, which continued to rise as markets favored companies supplying the AI buildout rather than those funding it.