Wall Street’s Magnificent Seven Wipe Out $2 Trillion in Market Value

The elite group of U.S. tech megacaps, popularly dubbed the “Magnificent Seven,” has witnessed a sharp $2 trillion erosion in market value since April 2, following renewed trade tensions triggered by President Donald Trump’s announcement of sweeping reciprocal tariffs on nearly all trading partners. The announcement sent shockwaves through global equity markets, igniting a broad selloff across the tech-heavy Nasdaq and shaking investor sentiment.

However, a partial recovery was seen this week after Trump announced a 90-day pause on the proposed tariffs — excluding China — providing temporary relief to a market already under strain from elevated interest rates and weak earnings expectations. The move helped the group regain over $1.5 trillion in value in just a few trading sessions. Still, the recent bounce has not fully reversed the broader decline that began earlier this year.

Despite the rebound, volatility remains elevated. Nvidia emerged as the standout performer, surging nearly 25 percent in the past five trading sessions alone, fueled by renewed investor optimism around artificial intelligence infrastructure and rising global demand for AI chips. The company, which gained over 183 percent in 2024, continues to command strong interest despite a year-to-date correction of around 20 percent, partly driven by competition from China’s DeepSeek.

Tesla, by contrast, has become the biggest laggard within the group. Its stock has fallen 34 percent since the start of the year, battered by disappointing delivery numbers, ongoing price cuts, and concerns over slowing EV demand. While the stock has rebounded 13 percent in the past five days, it remains deeply in the red, raising fresh questions about the company’s near-term outlook and market positioning.

Other members of the group, including Apple, Alphabet, Meta Platforms, Amazon, and Microsoft, posted gains this week in the range of 9 to 22 percent. Yet many remain underwater for the year. Apple has lost nearly 19 percent year-to-date, while Meta is down 10 percent despite a strong five-day rally. Microsoft, which saw an 11 percent gain this week, is still down roughly 7 percent for the year. Alphabet reiterated plans to invest $75 billion into data center expansion, while Microsoft is set to exceed $80 billion in infrastructure spending — both signaling long-term confidence in AI and cloud technologies.

The current pause in tariffs has been welcomed by global markets. Equity indices in the U.S., Europe, and Asia posted broad gains this week, with the Nasdaq jumping 12 percent in a single session — its strongest one-day rally since October 2008. Analysts, however, warn that the 90-day window could be merely a temporary reprieve unless meaningful progress is made on trade negotiations. Tariffs on Chinese imports have been raised to 125 percent, keeping geopolitical risk firmly in the picture.

With macroeconomic uncertainty persisting and tech valuations still elevated, institutional investors are likely to remain cautious. While the “Magnificent Seven” continue to dominate the technology and innovation landscape, their vulnerability to policy shocks, competition, and shifting demand is once again in focus. The coming weeks will test whether the recent recovery has legs or if another wave of selling is on the horizon.

Microsoft Unveils ‘Majorana 1’ Quantum Computing Chip Amid Ongoing Skepticism

Microsoft has introduced its first quantum computing chip, “Majorana 1,” marking a significant milestone in its pursuit of practical quantum computing. The chip, unveiled on Wednesday, is built on a novel topological core architecture that Microsoft claims will enable quantum computers to solve industrial-scale problems within years rather than decades.

Quantum computers are anticipated to tackle problems beyond the reach of classical computing. Unlike traditional bits, which exist in binary states (0 or 1), quantum bits, or qubits, can exist in multiple states simultaneously, potentially unlocking immense computational power. Competitors such as Google and IBM, alongside smaller firms like IonQ and Rigetti Computing, have also made significant strides in quantum computing, each employing different approaches to achieving quantum supremacy.

At the heart of Majorana 1 is the world’s first “topoconductor,” a new category of material capable of creating a unique state of matter using the Majorana particle—a theoretical entity believed to be its own antiparticle. According to Microsoft, the chip is based on “gate-defined devices” that combine the semiconductor indium arsenide with aluminum, a superconductor.

When the topoconductor is cooled to near absolute zero (approximately -400 degrees Fahrenheit) and exposed to magnetic fields, it is expected to form topological superconducting nanowires with Majorana Zero Modes (MZMs) at their endpoints.

“We took a step back and asked, ‘What kind of transistor does the quantum age require?’ That question led us here,” explained Chetan Nayak, a Microsoft technical fellow. “The combination of quality and details in our new materials stack has enabled a novel type of qubit and, ultimately, an entirely new architecture.”

Microsoft asserts that its topoconductor-based qubits are more stable, compact, and digitally controllable without the trade-offs seen in existing quantum computing alternatives, addressing some critics who raised apprehensions three years ago. The company has also published a research paper in Nature detailing how its researchers successfully engineered and measured the topological qubit’s quantum properties—an essential step toward practical quantum computing.

Ongoing Doubts About Microsoft’s Majorana Claims

Despite Microsoft’s confidence in its topological qubit approach, skepticism persists regarding the fundamental basis of its technology. In 2022, Microsoft published research asserting that it had detected Majorana particles—an essential component of its quantum computing framework. However, physicists from the University of Basel soon challenged these claims, arguing that Microsoft’s findings could be explained by alternative factors.

Their unique properties have sparked renewed interest in recent years, particularly for their potential to serve as stable qubits resistant to decoherence—a major challenge in quantum computing. Decoherence, caused by environmental disturbances, can quickly destroy quantum states, rendering calculations unreliable. If Majorana-based qubits truly exist, they could theoretically circumvent this issue.

However, a 2022 study published in Physical Review Letters by a team led by Prof. Jelena Klinovaja at the University of Basel had cast doubt on Microsoft’s claims. “Microsoft’s approach is promising,” noted Richard David Hess, lead author of the study. “But our calculations suggest that their data could also be explained by other effects unrelated to Majorana particles.”

The challenge in identifying Majorana particles lies in their elusive nature. Researchers rely on nanowires—semiconducting strands thousands of times thinner than a human hair—paired with superconductors to search for telltale quantum signatures. Microsoft’s 2022 findings were based on conductance measurements that indicated anomalies characteristic of Majorana states, alongside observations of a “topological phase”—a concept from topology, a branch of mathematics that examines properties of objects that remain unchanged under continuous transformations.

However, the Basel team conducted mathematical modeling of Microsoft’s experiments and found that similar anomalies and superconducting behaviors could be reproduced by minor imperfections, or “disorder,” within the nanowire itself. “Our results clearly show that disorder plays a significant role in these experiments,” explained Henry Legg, a postdoctoral researcher in Klinovaja’s group.

“While Microsoft’s work represents an exciting step, unambiguously detecting Majorana states and leveraging them for computing remains a formidable challenge,” Klinovaja concluded.

Sony removes Poland’s Cyberpunk 2077 video game from PlayStation, CD Projekt shares tumble down

Sony has removed Cyberpunk 2077 from its PlayStation Store following complaints of glitches in the video game created by Poland’s CD Projekt.

The game that claims to be an “open-world, action-adventure story set in a megalopolis obsessed with power, glamour and body modification” and it features Hollywood star Keanu Reeves. Sony’s knee-jerk move has hit the CD Projekt, Poland’s top video game maker, with its shares tumbling down from last week’s high by 12.2% on Friday.

Sony, however, said the suspension was temporary without giving any reason. The game Cyberpunk lets gamers play as mercenary outlaw “V” when people were stuck at home during the pandemic. Since the coronavirus crisis is around, the demand for the game has boosted.

Aware of bugs

CD Projekt CEO Adam Kicinski admitted the existence of bugs as there had been fewer external testers, who could not test it from home due to COVID-19. CD Projekt has promised to work on bugs and release patches in January and February. It means the game is not ready to debut in December and the decision to launch without proper tests for bugs was a big mistake, said market analysts.

“The game needed another six months of development to fix bugs and polish it,” John Vilnis, a gamer from Brisbane, Australia said.

CD Projekt, which gained prominence with its ‘The Witcher’ series to become one of Poland’s biggest listed companies, was expected to break sales records with Cyberpunk. So far, there is no move from Google’s Stadia and Microsoft about the removal of the game from their consoles or platforms.

The launch of Cyberpunk amid the pandemic, when other big players Microsoft’s ‘Halo Infinite’ have delayed their launch is significant. Microsoft is considering full refunds to those who bought the game from the Microsoft Store.

 

YouTube, Facebook, Twitter, Skype on One Page to Stem Terrorism

Web-based tech giants YouTube, Facebook, Twitter and Microsoft (Skype & Bing) have decided to work together to stop extremist content from their websites by creating a common database. The firms have agreed to share ‘hashes’ or unique digital fingerprints they automatically assign to videos or photos of such content.

The hashtag on such content enables the peers to identify the content on their platforms and remove them in turn. "We hope this collaboration will lead to greater efficiency as we continue to enforce our policies to help curb the pressing global issue of terrorist content online," the companies said in a statement.

The firms have long resisted outside or government intervention on policing their sites but came together recently to do more to remove extremist content in view of recent militant attacks in Paris and other cities in the West. YouTube and Facebook have already begun to use such hashes to automatically remove such content.

Until now the practice was that mainly users have to flag content that violates terms of service and then human editors will review and delete such content found in violation of the guidelines or norms. Twitter alone suspended 235,000 accounts between February and August 2016.

The new database will come into operation in early 2017. The European Union has laready established an EU Internet Forum last year to remove such extremist content.