Stagflation fears and weak Tesla and Alphabet earnings drive the Mag 7 index to its largest daily drop since 2025.
The S&P 500 and Nasdaq fell 1.21% and 2.15%, respectively, as surging oil prices and stagflation concerns weighed on risk assets. Tesla and Alphabet plunged 14.52% and 7.13% post-earnings, dragging the Mag 7 index down 4.78%—its steepest decline since 2025’s Liberation Day turmoil.
European markets mirrored the sell-off, with the STOXX 600 dropping 1.18%, led by the CAC 40 (-1.64%) and FTSE MIB (-2.80%). In Asia, the KOSPI tumbled 5.62%, erasing earlier weekly gains, while Japan’s Nikkei fell 2.87%, extending its losing streak to a third week.
US high-yield spreads widened, reflecting broader risk aversion. US equity futures stabilized, but Asian equities remained under pressure, with chipmakers following US peers lower.