Magnificent 7 Lose $4T in Market Value as Investors Rotate Out of AI Trades

The seven largest S&P 500 companies lost $4T in market value since Oct. 15 as investors rotated out of AI trades into defensive sectors, with the Semiconductor Index falling over 30% since June. Goldman Sachs reported that 60% of the S&P 500's constituents are in bear market territory, while corporate debt rose as hyperscalers relied on financing, including Amazon's long-term debt growing to $173B from $66B in nine months.