The impact of the ongoing conflict between the US and Iran has now begun to reflect itself in financial markets across the world. The so-called “Magnificent 7” technology stocks have seen a reduction of a total of $1.72 trillion in market capitalisation over the last four weeks.
The decline comes at a time of increased volatility on Wall Street amid geopolitical tensions in West Asia. Coined by Bank of America in 2023, the “Magnificent 7” which refers to a group of high-performing US tech giants like Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta Platforms and Tesla together account for a significant share of the US stock market.
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Markets under pressure as war drags on
This has been seen alongside a fall in the overall market. The S&P 500 index has now fallen to a seven-month low, slipping about 9% from its record high reached in January 2026. The Dow Jones Industrial Average has also slipped into corrective territory as it has now seen five consecutive weeks of losses.
The overall impact of the conflict has been due to fears of the impact it could have on energy supplies through the Strait of Hormuz. This has been seen alongside a rise in oil prices.
As per a Mint report, market strategists say uncertainty around the duration of the conflict has made investors cautious. “Risk appetite could not withstand the fog of war,” Doug Beath of Wells Fargo Investment Institute said, pointing to diplomatic tensions between the US and Iran.
Tech giants take the biggest hit
Out of these seven companies, Alphabet has suffered the biggest fall in market capitalisation, losing a staggering $450 billion, followed by a decline of $310 billion for Meta Platforms.
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Microsoft has also suffered a decline of $270 billion in the market capitalisation, while Nvidia has lost $230 billion. Meanwhile, Apple, Tesla and Amazon have also recorded substantial declines, reflecting a broad-based sell-off in large-cap tech stocks.
Brent crude oil prices have risen above $105 per barrel, a significant increase from pre-war prices. US oil prices have also surged.
Analysts are of the view that a rise in oil and natural gas prices could also fuel inflation across the world. The uncertainty has already started to affect consumers in the US.
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