Tech Stocks Surge: Trump's 90-Day Tariff Pause Spurs Market Rally

The 'Magnificent Seven' stocks, including Nvidia, Apple, Tesla, and Microsoft, saw a market value gain of over $1 trillion after President Trump announced a 90-day tariff pause. This relief comes amid concerns over AI spending and trade tensions with China, easing pressure on these tech giants.

The 'Magnificent Seven' tech stocks are experiencing a significant rally, poised to gain more than $1 trillion in market value following U.S. President Donald Trump's announcement of a 90-day tariff pause. With companies like Nvidia, Apple, Tesla, and Microsoft leading the charge, shares have surged between 7.8% and 13%, propelling the Nasdaq up by 8%.

For years, these high-performing tech stocks have driven the market, but they faced a downturn recently due to doubts over artificial intelligence spending and U.S.-imposed trade tariffs. These companies collectively lost approximately $5 trillion in market value since their peak in late 2024. The losses escalated last week as Trump imposed new tariffs on imports, impacting major tech markets, including China.

Wedbush Securities analyst Dan Ives emphasizes that the tariff easing provides much-needed relief for tech stocks but cautions that China remains a significant variable affecting the supply chain. Trump's decision to suspend many tariffs for 90 days provides businesses temporary relief for strategic planning, despite an unclear outlook. Big Tech's AI ambitions depend heavily on capital expenditure, talent, and hardware, all affected by trade clarity.

(With inputs from agencies.)