The Nasdaq Composite on Wednesday suffered its worst day since October 2022 after disappointing earnings reports from Tesla ( TSLA ) and Alphabet ( GOOGL ) shook Wall Street’s confidence in the stocks that were, until recently, its brightest stars.

The Nasdaq lost 654 points, or 3.6%, on Wednesday, in its biggest one-day drop since falling almost 3.9% on October 7, 2022. In terms of points, it was the index’s worst day since March 16, 2020, the day the onset of the Covid-19 pandemic led the Federal Reserve to drop interest rates to nearly 0%.

Wednesday’s rout erased an estimated $985 billion off the market capitalization of the $27 trillion Nasdaq.

Mag 7 Particularly Hard Hit

The day was even worse for the Magnificent Seven , the group of tech stocks that have propelled the market to dozens to record highs this year alone. The Roundhill Magnificent Seven ETF ( MAGS ), an equal-weighted index of the seven companies, tumbled 6.1%, its largest drop since it began trading in April 2023.

Wednesday’s declines officially plunged the ETF into correction territory. The fund’s shares have shed 12% since July 10, the day before a soft inflation report sparked a rotation into the small-cap stocks that stand to benefit most from the interest rate cuts that Wall Street sees on the horizon.