‘Magnificent Seven’ stocks are losing some of their shine, but their bonds are doing fine

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Meta, Apple, Microsoft and Nvidia shares are all in correction territory, but investors are still buying their bonds.

The so-called Magnificent Seven grouping of technology stocks lost some of its luster this week after four of the seven moved into correction territory, meaning their stocks have fallen at least 10% from their recent peaks.The group is made up of Facebook parent Meta Platforms Inc. META, -0.95%, Apple Inc. AAPL, +0.16%, Microsoft Corp. MSFT, -0.32%, Nvidia Corp. NVDA, -0.09%, Amazon. com Inc. AMZN, -0.61%, Google parent Alphabet Inc. GOOGL, -2.17% GOOG, -2.01% and Tesla Inc. TSLA, -1.88%.

The group is credited with helping drive the stock market’s gains in the first half of the year, driven by excitement about artificial intelligence. But the rally has stalled in recent weeks as investors have fretted over the potential for U.S. interest-rate increases, surging Treasury yields and China worries, with property developer Evergrande filing for U.S. bankruptcy protection late Thursday.

The first chart shows that Microsoft has by far the most bonds, mostly in the 30-year bucket. The software and cloud giant has more than $50 billion in long-term debt, according to its 2023 10-K filing with the Securities and Exchange Commission.

 

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