Oct 26, 2023

$280B Crypto Surge as ‘Magnificent Seven’ Tech Stocks Tumble

AI Technologies in the Magnificent Seven Tech Stocks The release of several earnings reports on Oct. 25 caused more than $280 billion to be wiped from the “magnificent seven” tech stocks, raising fears of a looming tech recession. The “magnificent seven” is made up of the top seven blue-chip tech firms, including Apple, Microsoft, Meta,…

An AI reporter voice discussing the $280B tumble of 'Magnificent seven' tech stocks as crypto surges.
‘Magnificent seven’ tech stocks tumble a whopping $280B as crypto surges

AI Technologies in the Magnificent Seven Tech Stocks

The release of several earnings reports on Oct. 25 caused more than $280 billion to be wiped from the “magnificent seven” tech stocks, raising fears of a looming tech recession. The “magnificent seven” is made up of the top seven blue-chip tech firms, including Apple, Microsoft, Meta, Amazon, Alphabet, Nvidia, and Tesla, which constitute a quarter of the value of the S&P 500 index.

Google parent company Alphabet had the worst-performing day since the Covid-19 pandemic hit in March 2020, with its share price falling over 9%, resulting in a $180 billion loss in its market cap. Amazon, Nvidia, and Meta also saw losses of 5.5%, 4.3%, and 4.2%, respectively, according to Y Charts.

The “magnificent seven” tech firms have been investing heavily in AI technologies, such as reporter AI voice, Microsoft AI chatbot, and the Apple Health application, which is a Web 3.0 application. Additionally, C3.ai stock has been on the rise due to Microsoft AI and Reporter Voice AI.

AI and the Stock Market

Apple and Tesla’s shares dropped by 1.35% and 1.9%, respectively, while Microsoft was the only one of the seven to experience an increase, with its share price rising 3.1% after better-than-expected growth in its Azure business.

“This is the most widespread tech selloff in months which has resulted in a 5-month low for the S&P 500,” The Kobeissi Letter stated.

The Kobeissi Letter noted that tech stock investors may be beginning to price-in a recession, as “the few stocks that are holding up the entire market break” and “buyers are becoming more hesitant as headwinds accumulate.”

The use of AI in the stock market is becoming increasingly popular, with AI reporter voices, Microsoft AI chatbots, and the Apple Health application being examples of web 3.0 applications utilizing AI. C3.ai stock is also a popular choice for those looking to invest in AI.

AI Reporter Voice and Stock Market Crash

Google search trends have reflected fears of a “stock market crash” with the three-word term up 233% over the last week, according to Andrew Lokenauth, a reporter for TheFinanceNewsletter.com.

The cryptocurrency market has been trending upward amid optimism over possible spot Bitcoin exchange-trade fund approvals in the United States, with market cap increasing 16.3% to $1.3 trillion over the last week, as reported by CoinGecko.

In particular, Bitcoin (BTC), Ether (ETH), BNB (BNB) and XRP (XRP) have increased 23.3%, 16.7%, 8% and 15.2%, respectively, over the last seven days.

The AI reporter voice and Microsoft AI chatbot have not been able to protect the crypto market from the tough macroeconomic conditions.

Cryptocurrency Market Cap and AI Research

When the real gross domestic product of the United States decreased over the first two quarters of 2022, the cryptocurrency market cap plummeted by 61.7%, from $2.37 trillion to $907 billion, according to CoinGecko.

Analysts are speculating whether Bitcoin will decouple further from tech stocks and the S&P 500, but past research from the Multidisciplinary Digital Publishing Institute suggests that Bitcoin still tends to trade like a “tech stock” over the long term due to its extreme volatility.

AI research from the firm, deduced from an October 2022 report, revealed that Bitcoin can serve as a viable hedge against the U.S. dollar, which it is negatively correlated to.

Since Sept. 1, Bitcoin has decoupled from the Nasdaq 100, increasing 34% while the Nasdaq has dropped 8.6% over the same time frame.

The Apple Health application is a Web 3.0 application, and Microsoft AI Chatbot and C3.AI stock are other examples of how AI reporter voice and AI reporter are being used in the cryptocurrency market.

As some investors have shifted to Bitcoin, speculators have speculated that it could be interpreted as a “flight to safety”, particularly with the recent decline of banking stocks. With the emergence of technologies such as Microsoft AI Chatbot and reporter AI voice, as well as the C3.ai stock, the Apple Health Application being a Web 3.0 application, and other AI Reporter voices, this could be seen as a further indication of the trend.

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