Tech Titans Bounce Back: A Temporary Reprieve from Tariff Impact

The 'Magnificent Seven' tech stocks gained over $1.5 trillion in market value after President Trump paused tariffs for 90 days, providing relief from recent losses. This pause allows tech companies to consider AI expansion plans despite ongoing uncertainties about trade. The announcement prompted market rallies, boosting share prices.

The 'Magnificent Seven' technology stocks saw a dramatic increase in market value, gaining more than $1.5 trillion on Wednesday. This surge followed U.S. President Donald Trump's decision to pause sweeping tariffs for 90 days, alleviating pressure on the tech sector.

Despite this rebound, tech companies have yet to recover the $3.4 trillion in value they lost since their peak in late 2024. The pause in tariffs provides breathing room for tech giants like Nvidia, Apple, and Microsoft to pursue AI expansion plans that had been stalled by trade uncertainties.

These stocks drove a significant market rally, boosting the Nasdaq by over 12%. Meanwhile, industry leaders are closely monitoring trade policies to adjust their budgets and investments in data centers and AI technology. The pause in tariffs offers temporary relief, but the outlook remains uncertain.

(With inputs from agencies.)