The seven biggest tech companies fell a lot in the first three months of 2026. Their main ETF, called MAGS, is down about 16% for the year, far worse than the overall market.
Investors who own a mix of U.S. and foreign stocks are doing a bit better. A global non‑U.S. ETF is almost flat, while a broad U.S. equal‑weight fund is up roughly 3.5%.
Tech Giants Lose Ground
Last week the S&P 500 fell for the fifth day in a row, mainly because big‑cap tech stocks dropped. The information‑technology and communication‑services sectors were the weakest, hurt by worries about the war in the Middle East and rising oil prices.
Even though some hoped high‑growth stocks would stay strong, the big‑tech names fell hard. Apple managed a small gain, but Microsoft, Alphabet, Meta and others fell between 6% and 12%.
MAGS Nears a Bear Market
The MAGS ETF had its worst two‑day slide since mid‑2025. It broke through the 38.2% Fibonacci level of its 2025 rally and now shows a bearish "death cross" where the short‑term average fell below the long‑term average.
Potential support sits near the 61.8% Fibonacci level, just above $50. A gap just under $50 could fill, pushing the price down about 30% from its recent highs. On the upside, the $62‑$63 area might act as resistance.
Right now MAGS is at its most oversold point in three years, and a lot of trading volume sits above the recent close of $55.45. The fund is still down about 5.5% from its December 2024 peak.
Looking Inside the ETF
Although MAGS is not a perfect copy of the seven‑stock index, it is the main fund that tracks the group. Let’s look at NVIDIA, the biggest remaining mega‑cap.
NVIDIA closed last week at its lowest level since September and is just above the weakest price seen in July 2025. The RSI indicator has stayed in a bearish zone between 30 and 60 since November, suggesting that large traders may be selling.
What Investors Might Do
Fundamental analysts see a chance here. NVIDIA and Meta now trade at under 16 times projected earnings, which could attract value‑focused investors looking for a bargain.
Seasonal Hints
Because MAGS is a new fund, its seasonal pattern is not clear yet. The Nasdaq‑100 ETF (QQQ) offers a clue: it usually performs well from May through July, a pattern that has held for the last 20 years.
Bottom Line
Rising oil prices and the conflict in the Middle East have added pressure to big‑tech stocks, pulling the S&P 500 down. The market could slip further, but the seasonal strength of QQQ in the second half of the year may help lift the broader market when earnings reports arrive.
Disclaimer: This article is for educational purposes only and does not constitute financial advice. Always consider your own situation and consult a professional before acting.
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