Apple Inc., Alphabet Inc., and Tesla Inc. have experienced significant stock declines this year, impacting the performance of the S&P 500 Index. Apple is down 16%, Alphabet down 7%, and Tesla has dropped 23%. These declines have dragged the index down by over 120 points. The broad market rally is uneven, as stocks like Microsoft and Nvidia thrive, benefiting from AI advancements, in contrast to companies like Apple that face challenges in integrating AI into their products. If these three stocks perform better, the S&P 500 could see gains of approximately two percentage points higher.
Apple Inc. has seen its shares drop 16% this year amid tariff concerns and problems developing artificial intelligence services. Alphabet Inc., the $2.1 trillion internet advertising giant, is down 7% amid fears that AI chatbots will eat into its lucrative Google search business.
Tesla Inc. is down 23% amid slumping electric vehicle sales. The three stocks have been a more than 120 point drag on the market-capitalization weighted S&P 500, which closed on Tuesday with a gain of about 5% on the year.
The rally is broadening, but the Mag 7 make up such a massive proportion of the overall market that if they stall, by definition the market will struggle.
On the other hand, Apple has struggled to integrate AI features into its devices since unveiling its vision of AI for the rest of us over a year ago.
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