Magnificent Seven Stocks Soar $1.5 Trillion as Trump Hits Pause on Tariffs

In a surprising turn of events, U.S. President Donald Trump announced a 90-day pause on his sweeping new tariffs, giving Wall Street a much-needed breather—and triggering a powerful rebound for the tech sector's elite. The “Magnificent Seven” tech giants—Nvidia, Apple, Tesla, Microsoft, Alphabet, Meta, and Amazon—rallied hard on Wednesday, collectively adding over $1.5 trillion in market value in a single day.

A Bounce Back—But Not a Full Recovery

The mega-cap stocks, known for their dominance in AI and cloud computing, had been hit hard in recent weeks. Since peaking in late 2024, they’ve shed an eye-watering $3.4 trillion in market cap, with $2 trillion lost just last week following Trump’s aggressive move to impose higher tariffs on tech-critical imports from countries like China.

The pause, however, provided a clear signal for investors to buy back into these high-growth names—particularly as it offers temporary relief for companies dependent on cross-border hardware and AI infrastructure.

Relief for Big Tech’s AI Dreams

“CFOs and COOs can finally breathe a little,” said Michael Ashley Schulman, Chief Investment Officer at Running Point Capital. “This pause gives companies the chance to proceed with AI expansion plans that had been frozen by uncertainty around trade policy—especially in areas like AI chip imports from Taiwan and South Korea.”

Schulman emphasized that while the relief is only temporary, it's crucial for tech giants whose massive investments in artificial intelligence depend on global supply chains, specialist hardware, and international talent.

Market Reaction: Massive Rally

The Magnificent Seven posted gains between 9.68% and 22.69%, leading a broader rally that lifted the Nasdaq Composite Index by more than 12%—one of its strongest single-day performances in years.

Investors cheered the return of relative stability, even as questions linger about the long-term direction of trade policy. Still, the rally underlines how sensitive tech valuations remain to global trade dynamics.

Spending Spree Continues

Despite the recent turmoil, Big Tech shows no sign of slowing down investment in AI infrastructure. Google-parent Alphabet reaffirmed its $75 billion commitment to expanding its data center footprint in 2025. Microsoft, meanwhile, confirmed it's on pace to exceed $80 billion in capex, citing both short- and long-term demand for AI computing power.

“These investments are not reactive—they’re part of a strategic vision informed by clear demand signals,” Microsoft stated earlier this week.

Tariffs Still in Play

Trump’s announcement doesn’t remove all the pressure. In fact, while tariffs were paused for most countries, Chinese imports will now face a staggering 125% tariff, up from the 104% level implemented just days ago. However, duties on other nations were softened in the same breath—part of a strategy that continues to keep businesses guessing.

The tariff pause may be temporary, but its impact on markets and AI innovation is immediate. For the Magnificent Seven and their investors, it’s a high-stakes game of geopolitical chess—with billions on the table.