Following the "blue wave," in which the Democratic Party secured control of both chambers of Congress in the U.S. midterm elections, the New York stock market plunged, causing an estimated drop of approximately $2.048 billion (2.8 trillion won) in one day in the valuation of Magnificent 7 (M7) stocks held by the National Pension Service. Nearly half of the decline originated from NVIDIA. The sharp drop in the New York stock market was driven by concerns over strengthened artificial intelligence (AI) regulations and a slowdown in data center investments.
According to MoneyToday on Friday, applying the closing prices of the New York stock market on the 4th and 5th to the holdings reported as of the end of June in the institutional investors' holdings report (13F) submitted by the National Pension Service to the U.S. Securities and Exchange Commission (SEC), the valuation of the National Pension Service's M7 stocks stood at approximately $45.382 billion based on the closing price on the 5th, a decrease of 4.3% in one day.
The target stocks are NVIDIA, Apple, Microsoft (MS), Amazon, Alphabet, Meta, and Tesla. This is an arithmetic estimate assuming that the National Pension Service maintained its end-of-June holdings through this date. As of the end of June, M7 stocks accounted for 28.1% of the National Pension Service's U.S. stock portfolio.
M7 refers to seven major U.S. technology stocks: NVIDIA, Apple, Microsoft (MS), Amazon, Alphabet, Meta, and Tesla.
NVIDIA recorded the largest valuation loss. As its share price plunged 9.26% on the 5th, the value of the National Pension Service's holdings decreased by approximately $942 million. This accounts for approximately 46% of the total M7 valuation decline. Microsoft followed with a decrease of approximately $302.8 million, and Tesla also saw a drop of approximately $249.9 million. Tesla fell 10.77% on the day, recording the largest decline among the M7 stocks.
The estimated decreases in valuation for the remaining stocks were: Apple at $168.3 million, Alphabet at $142 million, Amazon at $122 million, and Meta at $120.9 million.
However, despite the sharp drop on that day, the valuation of the National Pension Service's M7 holdings remains approximately 4% higher compared to the end of last June. Microsoft rose 43.7% during this period, and Apple also increased by 18.9%, contributing to the overall increase in valuation. In contrast, Tesla fell 18.3%, Alphabet Class A shares dropped 20.9%, and NVIDIA declined 9.2%. The valuation gains from Microsoft and Apple effectively offset the losses from the declines in these other stocks.
The New York stock market plunged on the 5th, centered on technology and semiconductor stocks. The NASDAQ Composite Index fell 5.52%, while the S&P 500 Index and the Dow Jones 30 Industrial Average Index dropped by 4.36% and 3.44%, respectively.
The Philadelphia Semiconductor Index crashed 12.25%. Selling pressure concentrated on semiconductor stocks, driven by Qualcomm's disappointing earnings report and concerns that AI infrastructure investment could be constrained by the Democratic Party's control of Congress.
Meanwhile, the 13F disclosure reflects only the National Pension Service's direct investment holdings. Kim Sung-ju, Chairman of the National Pension Service, previously stated via social media (SNS) in August that the figures shown in the 13F are limited to direct investments and that the actual investment scale is significantly larger when outsourced management is included.
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