A temporary pause in US tariffs sparked a $1.5 trillion rally last week, but tech giants led by Tesla have collectively shed nearly $2 trillion this month as trade war fears persist.
Wall Street | April 12, 2025 — The once-dominant “Magnificent Seven” tech giants of Wall Street have seen a massive $2 trillion drop in market value since April 2, 2025, amid renewed US-China trade tensions and market volatility. While last week brought a temporary reprieve — with the group recovering $1.5 trillion in gains following President Donald Trump’s 90-day tariff pause — broader concerns continue to weigh on investor sentiment.
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The Magnificent Seven, consisting of Apple, Amazon, Alphabet (Google), Meta Platforms, Microsoft, Nvidia, and Tesla, represent the vanguard of AI, EVs, cloud computing, and digital services. However, their staggering valuations have made them particularly vulnerable to macroeconomic shocks.
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Tariff Pause Spurs Temporary Rally
Following the announcement of a tariff pause on all nations except China, tech stocks rebounded sharply. On April 9 alone, Nvidia, Microsoft, Apple, Alphabet, Meta, Amazon, and Tesla closed up between 9.68% and 22.69%, lifting the Nasdaq by over 12%, marking its biggest single-day gain since 2008.
Despite the rebound, the group had collectively lost $3.4 trillion in market cap since late 2024, meaning last week’s gains only partially offset the broader rout.
Top Gainers & Losers: Nvidia Leads, Tesla Lags
- Nvidia has surged 25% in the past five sessions and is up 13% in the last five days. However, the AI chipmaker remains down 20% YTD, partly due to investor interest shifting toward China’s DeepSeek AI.
- Tesla is 2025’s biggest underperformer among the group, plunging 34% YTD. Despite a 10% gain in April, its longer-term performance continues to concern investors.
- Meta is up 12.3% in five days but down 10% YTD.
- Apple gained 12% this week, but its shares are down 19% YTD and 10% over the past month.
- Microsoft shares have risen 11% in the past five days, although they are still down 7% YTD.
In contrast, Alphabet announced a $75 billion investment in data centers, while Microsoft plans to allocate over $80 billion to cloud infrastructure — signaling continued long-term optimism despite current turbulence.
Expert Take: Market Still on Edge
“Trump’s 90-day pause excluded China, retaining a 10% base tariff globally while raising China-specific tariffs to 125%. This has created short-term relief but does not fully resolve the underlying trade tensions,” said Justin Khoo, Senior Market Analyst at VT Markets.
Market watchers warn that the group’s valuation remains fragile, especially amid inflation worries, potential Fed rate changes, and ongoing global trade disruptions.
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Magnificent Seven, Wall Street, Nasdaq, US tech stocks, Nvidia, Tesla, Apple, Meta, Microsoft, Alphabet, Amazon, Donald Trump tariffs, US-China trade war, stock market 2025, tech stocks crash, AI stocks, EV stocks, market volatility