BIG TECH’S ROUGH JUNE PUTS MAGNIFICENT SEVEN UNDER PRESSURE
June hasn’t just been volatile — it’s been a rough ride for the so‑called “Magnificent Seven” stocks.
To put things in perspective, the broader S&P 500 CBOE:SPX is down about 3% so far this month. That’s not great, but it’s far better than the hit taken by the Magnificent Seven ETF CBOE:MAGS, which has dropped nearly 13%. In fact, MAGS is on pace for its worst monthly performance since it launched in mid-2023.
What’s also notable is the broader shift happening in the market. Growth stocks (.IGX) have been lagging value stocks SP:SVX, and that underperformance is showing up clearly at the sector level. Communication services SP:S5TELS, consumer discretionary SP:S5COND, and tech SP:S5INFT — three sectors heavily skewed toward these mega-cap names — are leading the declines in June.
Looking at the technical picture, momentum has started to weaken as well. MAGS closed last week at $61.60, falling below its 34-week moving average (WMA) for the first time since mid-April. Historically, breaks below this level — like those seen in early March 2025 and mid-February 2026 — have tended to open the door to further downside.
That said, it’s not all bearish. There are several key support levels just below current prices. A trendline from the early 2025 lows sits around $60, and just beneath that is the December 2024 high near $58.70. The 89-WMA, which helped contain prior selloffs, is also rising toward roughly $58.50 this week. In other words, there’s a cushion not far below.
If buyers step in and push MAGS back above its 34-WMA — around $64.75 this week — it could signal a turnaround and put the ETF back on track to challenge, and potentially exceed, its record high of $71.16.
On the flip side, if those support levels don’t hold, the next downside targets come into view quickly: around $55 based on the March low, and potentially as low as $48.40 to fill an old gap.