Magnificent Seven adds whopping $1.5T in value as Trump pauses sweeping tariffs

New York Post - Apr 9th, 2025

The 'Magnificent Seven' tech stocks surged over $1.5 trillion in value on Wednesday after President Trump announced a 90-day pause on his recent tariffs, alleviating pressure on companies like Nvidia, Apple, and Microsoft. This came after a period of significant losses following the imposition of tariffs on imports, particularly from China, which had a detrimental impact on tech giants heavily reliant on international trade for AI development. The pause in tariffs led to a rally that saw shares rise between 9% and 23%, with the Nasdaq climbing more than 12%.

The temporary pause on tariffs provides a much-needed respite for tech companies to resume AI-related expansion plans that were on hold due to trade uncertainties. However, the future remains uncertain as President Trump simultaneously raised tariffs on Chinese imports to 125%, while lowering them for other countries. Companies like Alphabet and Microsoft are continuing their significant investments in data center infrastructure, with spending plans exceeding $75 billion and $80 billion, respectively. Wall Street now turns its attention to upcoming quarterly results, which will be crucial in understanding the full impact of trade tensions on tech companies' financials and strategic initiatives.

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RATING

5.2

Moderately Fair

Read with skepticism

The article provides a timely and relevant examination of the impact of tariff changes on major tech stocks, offering insights into investor behavior and market dynamics. However, its accuracy is undermined by a lack of direct citations and reliance on a single source, which limits its credibility and balance. The article's focus on financial specifics without broader context restricts its public interest and engagement potential. While it is clear and readable, the absence of diverse perspectives and transparency in sourcing diminishes its overall quality. To improve, the article would benefit from incorporating a wider range of viewpoints and more robust sourcing to enhance its reliability and appeal.

Accuracy

The article contains several factual claims that require verification. For instance, it states that the "Magnificent Seven" stocks gained over $1.5 trillion in market value after President Trump paused tariffs, which is a significant claim needing precise market data for confirmation. Additionally, it mentions a $3.4 trillion loss in value since the peak in late 2024, with $2 trillion lost since the previous week. These figures must be cross-checked with reliable financial data sources. The article also reports that Trump raised tariffs on Chinese imports to 125%, a factual detail that should be verified through official government announcements or credible news outlets. While the article provides specific numbers, the lack of citations or direct references to data sources limits its factual reliability.

Balance

The article predominantly focuses on the financial impact of tariff changes on the tech sector, particularly the 'Magnificent Seven' stocks. It provides a perspective that is heavily centered on the financial markets and investor sentiment, with quotes from a single investment officer. There is a lack of balance in terms of presenting other viewpoints, such as those of policymakers, consumers, or smaller businesses affected by the tariffs. The article could benefit from including perspectives on the broader economic implications of the tariffs beyond the tech sector, which would provide a more rounded view.

Clarity

The article is generally clear in its presentation of information, with a logical flow from the impact of tariff changes to the market response. The language is straightforward, making it accessible to readers with a basic understanding of financial markets. However, the absence of detailed explanations for some of the more technical terms, such as 'capex' or 'AI-related expansion plans,' might hinder full comprehension for a general audience.

Source quality

The article lacks direct attribution to diverse or authoritative sources. It quotes Michael Ashley Schulman, a chief investment officer, which provides some insight into investor perspectives. However, there is an absence of references to official statements from government entities or comprehensive data sources that could lend credibility to the claims about market values and tariff changes. The reliance on a single source might introduce bias and limits the article's reliability.

Transparency

The article does not adequately disclose the sources of its information, particularly the financial figures and tariff details. There is no explanation of the methodology used to calculate the market value changes or the impact of tariffs. The lack of transparency in how these figures were obtained or verified reduces the article's credibility. Additionally, there is no mention of potential conflicts of interest, such as the investment officer's exposure to the stocks discussed.