Is the tech stock-led bull market in the U.S. about to face a critical turning point?Since the beginning of 2023, the seven tech giants in the U.S. stock market have been a significant driving force behind the rise of U.S. stocks, contributing to most of the gains in the S&amp;P 500 index. However, in early 2025, the seven giants faced a collective setback.On Tuesday, U.S. tech stocks plummeted, with all seven giants suffering losses, and Tesla's intraday drop exceeded 8.8%, causing its market value to fall below $1 trillion.<img src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a1fb9917-a308-4999-94db-dca1554b1ce5.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" alt="" original-src="https://imageproxy.pbkrs.com/https://wpimg-wscn.awtmt.com/a1fb9917-a308-4999-94db-dca1554b1ce5.png"/>Data shows that as of the end of February, the &#34;Magnificent 7&#34; index tracked by Bloomberg has fallen over 10% since its peak in December last year, entering a technical correction zone, with a total market value loss of $1.4 trillion for the seven companies.This adjustment seems to break the market narrative of &#34;perpetual growth for tech stocks&#34; and exposes severe internal divisions within the industry: Tesla has become the biggest drag, followed by Microsoft and Google, while Meta has set a record for the longest consecutive gains in history.With a decline of over 25% this year, Tesla has become the worst-performing stock among the seven giants, with its market value shrinking nearly 40% from its historical peak after Trump's election. The electric vehicle giant is facing a double whammy, not only constrained by a series of disappointing sales data, such as a mere 3% year-on-year growth in global deliveries for Q4 2024, marking the lowest growth rate in four years. Additionally, industry competition is intensifying, eroding its market share.While most tech giants are adjusting this year, Meta's stock price surged against the trend due to investor optimism about its AI strategy, achieving 20 consecutive trading days of gains in February, setting a record for the longest consecutive gains among S&amp;P 500 constituents, with its market value skyrocketing by over $320 billion.As tech stocks adjust, Bank of America strategist Michael Hartnett warns that as European and Chinese stock markets outperform U.S. stocks, investors are increasingly skeptical about the further upside potential of the S&amp;P 500 index.Hartnett believes that the longer the S&amp;P 500 index takes to reach new highs, the more difficult it becomes, and the more doubts arise in the market. He recommends international stocks, anticipating that the tech giants driving the rise of U.S. stocks may falter.Although he states that investors are far from pessimistic about large tech stocks, if the trading logic becomes ineffective, these stocks could easily decline.In 2025, the performance of the U.S. stock market has significantly lagged behind other global markets. So far in 2025, the S&amp;P 500 index has risen by less than 2%, while the stock index of the seven tech giants has fallen by 3.3%. In contrast, the MSCI global index, excluding the U.S., has risen by 7%. Investors are beginning to question whether high valuations and massive AI expenditures can continue to drive these tech stocks higher

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As of the end of February, the seven tech giants in the United States have entered a technical correction zone, with the Bloomberg "Magnificent 7" index falling over 10% from its peak in December last year, resulting in a total market value evaporation of $1.4 trillion. Among them, Tesla performed the worst, with a decline of over 25% this year and a market value shrinking nearly 40% from its historical high. Bank of America’s well-known strategist Hartnett pointed out that as tech stocks adjust, investors are increasingly skeptical about the upside potential of the S&P 500 index and are more inclined towards international stocks

- The U.S. stock market, led by major tech companies, is facing a potential turning point as the "Magnificent 7" has collectively dropped over 10% since December 2024, erasing $1.4 trillion in market value.  
- Tesla has been the biggest loser among these companies, with a nearly 40% decline from its peak, while Meta has seen significant gains due to its AI strategy.  
- As global markets outperform the U.S., concerns grow about the sustainability of high valuations and massive AI investments, leading to skepticism about the future performance of the S&P 500.

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The seven giants of the US stock market have entered a technical adjustment zone, with a total market value evaporating by $1.4 trillion, and Tesla is the hardest hit