Tech Titans Surge as Trump Pauses Tariffs: Relief for 'Magnificent Seven'

Following President Trump's approval of a 90-day tariff pause, tech stocks like Nvidia, Apple, and Tesla experienced significant gains, reversing previous losses. The temporary reprieve offers a strategic planning window despite ongoing uncertainties, especially concerning China and AI investments. Nasdaq rose by 8% in response to the news.

In a surprising move, U.S. President Donald Trump has initiated a 90-day pause on new tariffs, providing relief for tech giants known as the "Magnificent Seven." This decision is poised to enhance the value of these powerhouse stocks by over $1 trillion.

Shares of leading tech firms, including Nvidia, Apple, and Tesla, spiked between 7.8% and 13%, leading to a substantial market rally that saw the Nasdaq climb by 8%. These tech stocks, which have long driven market performance, faced significant declines recently due to an exacerbated trade war with China and skepticism over AI investments.

Despite recovering some losses, these tech companies have collectively lost approximately $5 trillion in market capitalization since their peak in 2024. Trump's tariff pause offers a temporary respite, yet the road ahead remains fraught with challenges, particularly in relation to China's role in the tech supply chain.

(With inputs from agencies.)