The Magnificent 7 stocks — Amazon (AMZN), Microsoft (MSFT), Nvidia (NVDA), Meta Platforms (META), Alphabet (GOOG), Apple (AAPL), and Tesla (TSLA) — got off to a rough start this year. The launch of a lower-cost artificial intelligence (AI) model by Chinese start-up DeepSeek raised concerns about the level of spending in this space by major U.S. tech companies, leading to a selloff in the group. Later, President Donald Trump announced his sweeping reciprocal tariffs, which fueled broader market volatility and added pressure on Mag 7 stocks. The escalating U.S.-China trade tensions, culminating in a 145% tariff on all Chinese goods and China’s retaliatory tariffs reaching 125%, further weighed on the group. As a result, these stocks have been hit particularly hard amid concerns over the tariffs’ impact on their supply chains, business costs, and the global economy.
Shortly after reciprocal tariffs went into effect, Trump announced a 90-day pause on certain tariffs for most countries, excluding China. This sparked a relief rally in the Magnificent 7 stocks, with the group gaining over $1.5 trillion in market capitalization on April 10. Since then, numerous countries have lined up to negotiate in hopes of avoiding tariff increases. Last week, Trump said that agreements with Japan, South Korea, and India could be near. Also, China said on Friday it is assessing the possibility of trade talks with the U.S.
