Magnificent 7 Stocks Stumble—Wall Street’s Next Play? Crypto’s Disruptors

The so-called ’Mag 7’ tech giants are showing cracks—just as Bitcoin smashes ATHs and DeFi protocols eat their lunch. Wall Street’s old guard might finally need fresh blood.

Here’s the irony: TradFi’s darlings are bleeding market cap while crypto-native projects (see: BNB Chain’s surge) bypass legacy gatekeepers entirely. The FSA-regulated dinosaurs won’t admit it, but their playbook’s gathering dust.

One hedge fund manager’s cocktail napkin math: Reallocating just 5% of Mag 7 holdings to crypto could trigger the mother of all rotations. But hey—keep shorting ETH while retail stacks sats. What could go wrong?

Other sectors fall while Mag 7 underperforms

The picture outside of Big Tech doesn’t look much better. Sean Simonds, a strategist at UBS, sent a note Thursday saying, “Sales and earnings expectations (+5% and +10%, respectively) are moving lower in virtually every sector.” Sean said the worst hits are in consumer discretionary stocks.

That includes cars and household goods—areas that are getting beat up by tariff effects. Those stocks are now underperforming the rest of the market by 20%.

This means even if the Mag 7 can’t carry the weight anymore, there aren’t many sectors ready to step in. Wall Street is stuck, trying to rally with no one leading.

Later Thursday evening, S&P 500 futures gained a small bump of 0.3%. Nasdaq-100 futures moved up 0.4%, while Dow Jones Industrial Average futures didn’t move much at all. That little boost followed Alphabet’s Q1 earnings report. The company beat on both revenue and profit. In after-hours trading, its stock went up around 5%.

Not every name in tech had a win. Intel disappointed. After giving investors weak guidance and saying it would slash spending on operations and capital, the stock crashed over 5% in extended hours.

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