Magnificent Seven ETF Falls 4.25% on July 23, Tesla Plunges 12.31% After Earnings Miss

According to market reports, the Roundhill Magnificent Seven ETF (MAGS) tracking U.S. tech giants fell 4.25% today (July 23), marking its largest single-day decline since April 2025. Tesla (TSLA-US) led losses with a 12.31% plunge after reporting second-quarter adjusted earnings per share of $0.33, missing analyst expectations of $0.51. Alphabet (GOOGL-US) declined 6.79% despite raising 2026 capital expenditure guidance to $205 billion, as investors grew concerned over cash flow pressures from AI infrastructure spending.

Both Tesla and Alphabet reported negative free cash flow this quarter, with Alphabet experiencing its first-ever negative FCF as a public company. Brent crude oil prices surged past $100 per barrel to a five-month high following Houthi attacks on Saudi tankers in the Red Sea, intensifying risk-off sentiment and weighing on high-valuation tech stocks. U.S. 10-year Treasury yields climbed to January 2025 highs amid rising inflation concerns.