Microsoft lost more than $350 billion in market value in June, ranking among the largest drags on the S&P 500. The Magnificent Seven erased roughly $2 trillion collectively this month, accounting for over two-thirds of the index’s market-cap loss while the rest of the S&P 500 posted a median 0.3% gain.
Microsoft saw its market capitalization shrink by over $350 billion in June, marking one of the largest declines among its megacap peers. The drop reflects the concentrated selling of high-growth names as investors rotated out of top-weighted positions.
Microsoft’s single-company loss contributed significantly to the broader S&P 500 decline, with the Magnificent Seven accounting for more than two-thirds of the index’s market-cap erosion this month. Despite the headline drop, the remaining 493 S&P 500 constituents achieved a median gain of 0.3%.
The collective $2 trillion wipeout by the Magnificent Seven underscores the concentration risk within the S&P 500, where a handful of large names can dictate overall performance. Similar large declines at Amazon, Apple and Alphabet highlight the vulnerability of a top-heavy index.
Persistent weakness among megacaps could undermine broader market gains even if smaller stocks hold up. Investors and analysts may need to reassess valuation models for high-growth technology firms as index dynamics shift away from blockbuster winners.
