Shares of tech giants are falling, led by Nvidia and Tesla

Major representatives of the technology sector, including Tesla and Nvidia, led the decline in the shares of the so-called «Magnificent Seven» during pre-market trading in the United States on Monday.

The reason for the downward trend was the desire of investors to lock in profits after the recent rally in shares of leading technology companies. Additional pressure on the market was exerted by the downgrade of the US credit rating announced by Moody's, which worsened the general mood of the bidders.

The decline in quotations affected almost all key companies. Tesla shares sank by 4.7%, Nvidia — by 3%, Meta — by 2.1%, Amazon — by 2%, Alphabet — by 2%, Apple — by 1.8%, and Microsoft — by 1.2%.

Nevertheless, despite the correction, last week the equally weighted index of these stocks showed an increase of 9.3% — the maximum weekly increase since the beginning of 2023. The main driver of growth was the announcements of new AI deals made during former President Donald Trump's visit to the Middle East. Also, a significant contribution was made by the presentation of the Nvidia CEO, during which the latest developments of the company aimed at strengthening its leading position in the AI chip market were presented.