The seven giants of the US stock market have all entered a technical correction zone. Microsoft Corporation (MSFT.US) has fallen by more than 18% since the beginning of this year.

Against the backdrop of political tensions in GEO Group Inc and a decrease in market risk appetite, the "Big Seven" U.S. stocks collectively entered a technical pullback range. On Friday, the technology Big Seven index, which tracks these companies, closed more than 10% below the historical high set in October last year, reaching the market's commonly defined "pullback" level. Data shows that the index fell 1.6% on Friday, after dropping 1.9% on Thursday. In the past few weeks, the index has repeatedly fallen below the pullback line intraday, but it was not until this Friday that it first confirmed entering a technical pullback at the close. This trend indicates that the core forces that have driven the rise in U.S. stocks in recent years are beginning to show signs of significant cooling. With the push of the artificial intelligence investment boom, these technology giants were once seen as the earliest beneficiaries and became the main drive of the S&P 500 index bull market. Data shows that the Big Seven index rose by 107% in 2023, 67% in 2024, and 25% in 2025. However, since entering 2026, the stock prices of the seven companies have all fallen. The "Big Seven" refers to seven technology giants: Alphabet (GOOGL.US, GOOG.US), NVIDIA Corporation (NVDA.US), Meta Platforms (META.US), Apple Inc. (AAPL.US), Amazon.com, Inc. (AMZN.US), Tesla, Inc. (TSLA.US), and Microsoft Corporation (MSFT.US). So far this year, investing in these seven companies has all yielded negative returns. Market participants point out that investors are beginning to question the prospects for returns on AI-related investments. Kim Forrest, chief investment officer at Bokeh Capital Partners, said that many investors are reevaluating the significant investments that technology companies have made in the field of AI. "Investors are starting to question the corporations' rapid pace of investing in AI funds at this time, without a clear profit path in the short term. It seems more like defensive measures against potential competitors," she said. "Momentum investors typically lean towards investing in assets that continue to rise." As investors begin to demand to see actual returns on AI investments, the allure of large technology companies has diminished. At the same time, the market is also concerned that new artificial intelligence tools may have a disruptive impact on industries such as software. Among the Big Seven, Microsoft Corporation has performed the weakest this year, with its stock price falling by over 18%. Although the fall in stock prices has led to a decrease in the valuation of these companies, the overall valuation is still above the average market level. Against the backdrop of increased political risk in GEO Group Inc and intensified market volatility, some investors are reducing their allocation to high-risk assets and increasing their holdings in sectors considered defensive, such as energy and utilities. In addition, the war between the U.S. and Iran and the surge in oil prices are also putting pressure on the overall U.S. stock market. However, some investors believe that large technology stocks themselves still have a certain "safe haven attribute." They point out that these companies have strong profit growth, robust balance sheets, and lower exposure to commodity price risks, so the current stock price pullback actually provides a buying opportunity. Robert Edwards, chief investment officer at Edwards Asset Management, said that the profit yield of large technology companies is somewhat similar to U.S. treasury bond yields, making them attractive to investors seeking stable returns. "From a valuation perspective, large technology stocks still have reasonable prices and real growth potential. AI is not just a concept hype, these companies are likely to generate cash flow through AI investments in a reasonable amount of time, although capital spending levels are indeed very high."