The 'Magnificent Seven' group of stocks, including Microsoft, Amazon, Tesla, Apple, Meta, Alphabet, and Nvidia, have seen significant declines year-to-date in 2025, with Tesla dropping -25.52% and Meta being the only stock to gain +8.79%. This has raised concerns about a potential bubble burst in these stocks. Hedge funds have been aggressively selling US technology stocks, including the Magnificent Seven, at the fastest pace since July 2024, marking one of the top de-risking events over the last five years. This sell-off has reduced hedge fund exposure to these stocks to the lowest level since mid-2023, surpassing the pace during the 2022 bear market. The broader market has faced challenges, with the S&P 500 Index experiencing a rocky February. Despite this, the S&P 500 is up 1.2% year-to-date, while the rest of the 493 stocks in the index have risen 4.1%. Goldman Sachs strategists have indicated that any rebound in the S&P 500 is likely to be temporary, citing ongoing economic concerns and a reduction in their full-year earnings growth estimate from 11% to 9%. Market sentiment remains negative, with investors worried about the impact of potential US tariffs on Canadian and Mexican imports, as announced by President Trump. These tariffs are set to be imposed on March 4 for Mexico and Canada, and additional tariffs on China are scheduled for April 2. Other factors contributing to the market's downturn include bearish sentiments from retail investors, a decline in Bitcoin prices below $80,000, a 13% drop in AI software stocks, and a 15% decrease in oil prices.