By Joy Wiltermuth and Frances Yue
This new chapter started when the early AI stalwarts began serving as the next kingmakers of the market
Investors should brace for more sharp stock-market pullbacks like Tuesday's rout. They are quickly becoming a feature of this bull market.
Shares of the world's largest tech companies have taken a backset this year to beneficiaries of their artificial-intelligence spending blitz, with semiconductor stocks taking a leading role in driving the market higher.
The latest chapter started when the early AI stalwarts began serving as the next kingmakers of the market. After driving much of the market's gains in 2023 and 2024, shares of the "Magnificent Seven" started to lose steam in 2025.
