‘Magnificent Seven Stocks on Fire’ as Investors Cheer U.S.-China Tariff Deal

The Magnificent Seven — Tesla (TSLA), Amazon (AMZN), Apple (AAPL), Meta (META), Nvidia (NVDA), Alphabet (GOOGL), and Microsoft (MSFT) — surged in the pre-market trading session. Investors cheered the U.S. and China’s trade deal, which includes temporarily slashing tariffs by 115%, marking a major step toward easing trade tensions.

It must be noted that the deal includes a 90-day pause on tariff hikes, with the U.S. reducing duties on Chinese imports to 30% from 145%, and China lowering its levies to 10% from 125%.

Market Rally Fueled by Tariff Relief

The agreement has greatly lifted sentiments through global markets. Among the Magnificent Seven, Tesla was up 7.8%, Amazon rose 7.9%, Apple gained 6.5%, and Meta climbed 6.4%. At the same time, Nvidia, Alphabet, and Microsoft stocks rose 4.6%, 2.6%, and 1.9%, respectively.

The Roundhill Magnificent Seven ETF (MAGS), which tracks top tech giants, was up 5.5% at the time of writing. So far this year, it’s down nearly 12%.

Also, the deal has strengthened the U.S. dollar, boosting investor confidence as tariff reductions ease trade tensions. The Dollar Index surged 1.3% to 101.46, hitting a one-month high.

Why Are These Stocks Reacting?

With tariff relief improving cost efficiencies, these tech giants are well-positioned for long-term gains as markets stabilize.

Apple and Nvidia rely heavily on global supply chains, making them sensitive to trade policies. Lower tariffs mean reduced costs for parts and manufacturing, boosting profit margins. Similarly, Amazon and Microsoft gain from improved global trade conditions, boosting consumer and enterprise spending.

Also, Tesla earlier faced rising costs due to high tariffs on auto parts, but with levies now reduced, its production expenses are easing.

Moreover, Meta and Alphabet stand to gain from lower U.S.-China tariffs, particularly in their advertising and cloud businesses. With reduced tariffs, Chinese companies may increase ad spending on platforms like Facebook and Google, reversing recent declines.

Is it Time to Buy the Magnificent 7 Stocks?

Wall Street analysts suggest that long-term growth prospects for these tech giants remain strong, particularly as AI and cloud computing continue to drive demand.

According to the TipRanks’ Stock Comparison Tool for Magnificent 7 Stocks, Nvidia, Microsoft, Amazon, Alphabet, and Meta Platforms score Wall Street’s “Strong Buy” consensus rating, with NVDA stock offering the highest upside potential among them.