U.S. technology stocks faced a test of confidence after earnings reports from Alphabet and Tesla triggered market skepticism about returns on artificial intelligence investments. The "Magnificent Seven" collectively shed nearly $890 billion in market value in a single week—the worst weekly performance since the tariff turmoil of April 2025. Next week, earnings from Microsoft, Amazon, Meta, and Apple will arrive in rapid succession, becoming the pivotal battle that determines whether this AI capital expenditure race can regain investor confidence. Over the past week, the Nasdaq Composite fell 2.1% and the S&P 500 declined 0.6%, with both indexes posting their first consecutive two-week losing streaks since March. Tesla tumbled 18% for the week, its worst performance since December 2022; Amazon, Alphabet, and Meta all dropped more than 6%. On July 23 alone, the seven giants saw $797 billion in market value wiped out in a single day, with the Mag 7 Index plunging 4.8%. Alphabet's quarterly capital expenditure reached $45 billion, and its full-year capex guidance ceiling was raised to $205 billion, pushing free cash flow into negative territory for the first time since the company went public. Tesla's profit margins and earnings per share came in well below analyst expectations, and CEO Elon Musk called 2026 a "massive capex year," after which shares plummeted 15% in a single day, erasing roughly $200 billion in market