Magnificent Seven Enters Correction as AI, Iran War Risks Mount

The Magnificent Seven group of megacap technology stocks fell into a correction Friday as investors flee risk assets amid concerns about the health of the artificial intelligence trade and tension stemming from the war with Iran.

A Bloomberg index of the companies closed more than 10% below its October record, the technical level that indicates a correction. The index, which declined 1.6% Friday after falling 1.9% on Thursday, had briefly fallen below the level on an intraday basis multiple times in the recent weeks but had yet to close there.