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Trump's Tariff Pause Triggers Epic Rally: How to Play Mag 7 Now
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U.S. President Donald Trump is shaking up the stock market— and how! Wall Street lost over $6 trillion last week thanks to his tariff bombshell, which triggered panic selling and prompted economists and investment banks to raise recession odds. While that bloodbath was historic, yesterday’s rally on Trump’s 90-day pause in reciprocal tariffs on most countries (except China) will also go down in history.
It was a pause that powered markets to their third-biggest one-day gains since World War II. The S&P 500 jumped 9.52%, the biggest one-day gain since 2008. The Dow Jones was up 7.87% (its biggest gain since March 2020), and Nasdaq jumped 12.16% yesterday (its second-best day ever). Trump’s latest tariff mood swing gave investors a much-needed breather.
Before we discuss that, one thing is clear—investors shouldn’t get too excited just yet. Trump is known for his unpredictable policy shifts, and the trade war is far from over.
Volatility is Here to Stay
One big rally isn’t enough to undo the economic damage that’s already done. And most importantly, Trump’s tariff pause isn’t a full retreat — not even close. Key tariffs remain in place, including a sweeping 10% tariff on nearly all imports and a 125% tariff on Chinese goods. Tariffs on steel, aluminum and selected products from Mexico and Canada are also still active.
While markets celebrated the pause, the underlying trade tensions are still in place. Trade tensions with China have, in fact, escalated. After the United States imposed a 104% tariff on Chinese goods, Beijing retaliated with an 84% levy, prompting Trump to hike tariffs to 125%.
Goldman Sachs, which had just made a U.S. recession its base case, reversed course after the latest tariff announcement. However, the firm expects just 0.5% GDP growth and still sees a 45% chance of recession — a reminder that the tariff relief is not a cure-all.
This tariff pause may spark a short-term rally. But volatility will likely continue. So, the battle may be won for now, but the broader war — and its economic fallout — is far from over.
A Closer Look at the Mag 7 Post Yesterday’s Rally
Tesla: Shares of the electric vehicle (EV) giant rallied roughly 23% in yesterday’s rally, adding a staggering $36 billion to Elon Musk’s net worth in just one day. But beneath the flashy headlines, challenges remain. The core EV business is under pressure from rising competition, and the brand’s shine isn’t what it used to be. Tesla’s long-term story now leans heavily on its autonomous driving ambition. Progress in FSD approvals and robotaxi development will be critical for future growth. For existing investors, staying put may make sense. However, for new investors, patience might pay until Tesla actually delivers on AV and EV promises.
The Zacks Consensus Estimate for Tesla’s 2025 EPS implies year-over-year growth of 9.5%. The estimate for the same has moved south by 1 cent over the past seven days. The stock currently carries a Zacks Rank #3 (Hold).
NVIDIA: Shares of NVIDIA rose nearly 19% yesterday. The company is the undisputed leader in AI chips, data centers, gaming and autonomous vehicles. As the artificial intelligence (AI) revolution accelerates, NVIDIA’s high-performance chips have become critical for hyperscalers as well as for enterprises and AI-focused startups. The data center segment continues to be a powerhouse for NVIDIA, fueled by the explosive rise of AI workloads and cloud computing demand. With businesses racing to build out AI infrastructure, NVIDIA is firmly positioned at the center of this secular shift — not just riding the wave but helping create it. The company that is shaping the future of AI, cloud computing and data centers is worth investing in now.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 EPS implies year-over-year growth of 47.5%. The estimate has moved north by 2 cents over the past 30 days. The stock currently carries a Zacks Rank #2 (Buy).
Amazon: Shares of this e-commerce titan were up 12% yesterday. The company’s strong execution across logistics, cloud, and retail bode well. Its delivery speed continues to impress, with over 9 billion same- or next-day shipments in 2024. Prime remains a key advantage and AWS remains a powerful growth engine. Amazon’s AI investments show long-term ambition but monetization is in the early stages. Despite major spending on AI infrastructure, near-term revenues from AI are limited, and timelines are unclear. Meanwhile, competition in the agentic AI space is fierce, with big players like OpenAI, Google, and Anthropic in the mix. While Amazon’s overall performance justifies holding on to the stock now, new investors may want to wait for clearer signs of AI monetization before becoming more bullish.
The Zacks Consensus Estimate for AMZN’s 2025 EPS implies year-over-year growth of 13.5%. The estimate for the same has declined 4 cents over the past seven days. The stock currently carries a Zacks Rank #3.
Apple: Shares of this consumer tech giant rebounded 15% yesterday after one of its worst 4-day losing streak since 2000. Apple is one of the most vulnerable stocks in the Mag 7, given its heavy reliance on manufacturing and revenues from countries like China that are now facing steep tariffs. These tariffs threaten to push prices even higher, potentially weakening already sluggish demand. iPhone sales are flatlining, especially in China, where competition from Huawei and Xiaomi is rising. The Vision Pro headset isn’t gaining traction, with reports of production cuts due to weak demand. Meanwhile, Apple’s efforts in AI are lagging. Key updates, like the improved Siri, are delayed until 2026, raising concerns. With no clear growth driver beyond the iPhone and its AI roadmap falling behind, Apple has a lot to catch up on, which doesn’t bode well for investors.
The Zacks Consensus Estimate for AAPL’s fiscal 2025 EPS implies year-over-year growth of 7%. The estimate has declined 4 cents over the past seven days. The stock currently carries a Zacks Rank #4 (Sell).
Microsoft: Shares of MSFT rose 10% yesterday. The company continues to strengthen its AI leadership through its expanding Copilot+ ecosystem and integration of AI across its product suite. Its enterprise refresh cycle, Azure growth and gaming momentum continue to drive healthy cash flows. However, near-term growth may be constrained by infrastructure bottlenecks. While Microsoft’s long-term AI vision remains compelling, fierce cloud competition from AWS adds pressure. With heavy AI investments expected to pay off by late 2025, investors may want to wait for a more attractive entry point. For now, holding Microsoft stock seems prudent.
The Zacks Consensus Estimate for Microsoft’s fiscal 2025 EPS implies year-over-year growth of 11%. The estimate for the same has declined a cent over the past seven days. The stock currently carries a Zacks Rank #3.
Alphabet: Shares of GOOGL were up roughly 10% yesterday. The company remains a leader in search and continues to gain traction in cloud services, driven by growth in AI infrastructure, its Vertex AI platform and rising adoption of generative AI tools. Alphabet exited 2024 with a $110 billion run rate from its Cloud and YouTube segments. While its GenAI and cloud investments offer long-term upside, the company faces growing regulatory scrutiny. Allegations of unfair promotion of its search engine through Android, along with lawsuits related to data privacy, AI practices and copyright issues, pose ongoing risks. Despite strong fundamentals, these headwinds could weigh on sentiment, making it one to watch with caution.
The Zacks Consensus Estimate for GOOGL’s 2025 EPS implies year-over-year growth of 11%. The estimate has moved south by 3 cents over the past seven days. The stock currently carries a Zacks Rank #3.
Meta Platforms: Shares of the social media giant jumped 15% yesterday. Meta Platforms continues to dominate social commerce through Instagram and Facebook, with strong AI-driven engagement strategies. With over 3.35 billion daily users, Meta Platforms has vast data resources to power its AI initiatives. The company is also investing heavily in AI infrastructure, which supports long-term growth. However, monetization challenges remain. META’s new platform, Threads, is still in the early stages, with ad rollout planned gradually and no meaningful revenue contribution expected in 2025. While the long-term potential remains strong, investors may want to wait for a more attractive entry point.
The Zacks Consensus Estimate for Meta Platform’s 2025 EPS implies year-over-year growth of 6.3%. The estimate for the same has moved south by 24 cents over the past seven days. The stock currently carries a Zacks Rank #3.
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Trump's Tariff Pause Triggers Epic Rally: How to Play Mag 7 Now
U.S. President Donald Trump is shaking up the stock market— and how! Wall Street lost over $6 trillion last week thanks to his tariff bombshell, which triggered panic selling and prompted economists and investment banks to raise recession odds. While that bloodbath was historic, yesterday’s rally on Trump’s 90-day pause in reciprocal tariffs on most countries (except China) will also go down in history.
It was a pause that powered markets to their third-biggest one-day gains since World War II. The S&P 500 jumped 9.52%, the biggest one-day gain since 2008. The Dow Jones was up 7.87% (its biggest gain since March 2020), and Nasdaq jumped 12.16% yesterday (its second-best day ever). Trump’s latest tariff mood swing gave investors a much-needed breather.
Shares of Magnificent 7 tech giants — Tesla (TSLA - Free Report) , NVIDIA (NVDA - Free Report) , Amazon (AMZN - Free Report) , Apple (AAPL - Free Report) , Microsoft (MSFT - Free Report) , Alphabet (GOOGL - Free Report) and Meta Platforms (META - Free Report) — surged alongside the broader market. But are any of these worth buying now?
Before we discuss that, one thing is clear—investors shouldn’t get too excited just yet. Trump is known for his unpredictable policy shifts, and the trade war is far from over.
Volatility is Here to Stay
One big rally isn’t enough to undo the economic damage that’s already done. And most importantly, Trump’s tariff pause isn’t a full retreat — not even close. Key tariffs remain in place, including a sweeping 10% tariff on nearly all imports and a 125% tariff on Chinese goods. Tariffs on steel, aluminum and selected products from Mexico and Canada are also still active.
While markets celebrated the pause, the underlying trade tensions are still in place. Trade tensions with China have, in fact, escalated. After the United States imposed a 104% tariff on Chinese goods, Beijing retaliated with an 84% levy, prompting Trump to hike tariffs to 125%.
Goldman Sachs, which had just made a U.S. recession its base case, reversed course after the latest tariff announcement. However, the firm expects just 0.5% GDP growth and still sees a 45% chance of recession — a reminder that the tariff relief is not a cure-all.
This tariff pause may spark a short-term rally. But volatility will likely continue. So, the battle may be won for now, but the broader war — and its economic fallout — is far from over.
A Closer Look at the Mag 7 Post Yesterday’s Rally
Tesla: Shares of the electric vehicle (EV) giant rallied roughly 23% in yesterday’s rally, adding a staggering $36 billion to Elon Musk’s net worth in just one day. But beneath the flashy headlines, challenges remain. The core EV business is under pressure from rising competition, and the brand’s shine isn’t what it used to be. Tesla’s long-term story now leans heavily on its autonomous driving ambition. Progress in FSD approvals and robotaxi development will be critical for future growth. For existing investors, staying put may make sense. However, for new investors, patience might pay until Tesla actually delivers on AV and EV promises.
The Zacks Consensus Estimate for Tesla’s 2025 EPS implies year-over-year growth of 9.5%. The estimate for the same has moved south by 1 cent over the past seven days. The stock currently carries a Zacks Rank #3 (Hold).
NVIDIA: Shares of NVIDIA rose nearly 19% yesterday. The company is the undisputed leader in AI chips, data centers, gaming and autonomous vehicles. As the artificial intelligence (AI) revolution accelerates, NVIDIA’s high-performance chips have become critical for hyperscalers as well as for enterprises and AI-focused startups. The data center segment continues to be a powerhouse for NVIDIA, fueled by the explosive rise of AI workloads and cloud computing demand. With businesses racing to build out AI infrastructure, NVIDIA is firmly positioned at the center of this secular shift — not just riding the wave but helping create it. The company that is shaping the future of AI, cloud computing and data centers is worth investing in now.
The Zacks Consensus Estimate for NVIDIA’s fiscal 2026 EPS implies year-over-year growth of 47.5%. The estimate has moved north by 2 cents over the past 30 days. The stock currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Amazon: Shares of this e-commerce titan were up 12% yesterday. The company’s strong execution across logistics, cloud, and retail bode well. Its delivery speed continues to impress, with over 9 billion same- or next-day shipments in 2024. Prime remains a key advantage and AWS remains a powerful growth engine. Amazon’s AI investments show long-term ambition but monetization is in the early stages. Despite major spending on AI infrastructure, near-term revenues from AI are limited, and timelines are unclear. Meanwhile, competition in the agentic AI space is fierce, with big players like OpenAI, Google, and Anthropic in the mix. While Amazon’s overall performance justifies holding on to the stock now, new investors may want to wait for clearer signs of AI monetization before becoming more bullish.
The Zacks Consensus Estimate for AMZN’s 2025 EPS implies year-over-year growth of 13.5%. The estimate for the same has declined 4 cents over the past seven days. The stock currently carries a Zacks Rank #3.
Apple: Shares of this consumer tech giant rebounded 15% yesterday after one of its worst 4-day losing streak since 2000. Apple is one of the most vulnerable stocks in the Mag 7, given its heavy reliance on manufacturing and revenues from countries like China that are now facing steep tariffs. These tariffs threaten to push prices even higher, potentially weakening already sluggish demand. iPhone sales are flatlining, especially in China, where competition from Huawei and Xiaomi is rising. The Vision Pro headset isn’t gaining traction, with reports of production cuts due to weak demand. Meanwhile, Apple’s efforts in AI are lagging. Key updates, like the improved Siri, are delayed until 2026, raising concerns. With no clear growth driver beyond the iPhone and its AI roadmap falling behind, Apple has a lot to catch up on, which doesn’t bode well for investors.
The Zacks Consensus Estimate for AAPL’s fiscal 2025 EPS implies year-over-year growth of 7%. The estimate has declined 4 cents over the past seven days. The stock currently carries a Zacks Rank #4 (Sell).
Microsoft: Shares of MSFT rose 10% yesterday. The company continues to strengthen its AI leadership through its expanding Copilot+ ecosystem and integration of AI across its product suite. Its enterprise refresh cycle, Azure growth and gaming momentum continue to drive healthy cash flows. However, near-term growth may be constrained by infrastructure bottlenecks. While Microsoft’s long-term AI vision remains compelling, fierce cloud competition from AWS adds pressure. With heavy AI investments expected to pay off by late 2025, investors may want to wait for a more attractive entry point. For now, holding Microsoft stock seems prudent.
The Zacks Consensus Estimate for Microsoft’s fiscal 2025 EPS implies year-over-year growth of 11%. The estimate for the same has declined a cent over the past seven days. The stock currently carries a Zacks Rank #3.
Alphabet: Shares of GOOGL were up roughly 10% yesterday. The company remains a leader in search and continues to gain traction in cloud services, driven by growth in AI infrastructure, its Vertex AI platform and rising adoption of generative AI tools. Alphabet exited 2024 with a $110 billion run rate from its Cloud and YouTube segments. While its GenAI and cloud investments offer long-term upside, the company faces growing regulatory scrutiny. Allegations of unfair promotion of its search engine through Android, along with lawsuits related to data privacy, AI practices and copyright issues, pose ongoing risks. Despite strong fundamentals, these headwinds could weigh on sentiment, making it one to watch with caution.
The Zacks Consensus Estimate for GOOGL’s 2025 EPS implies year-over-year growth of 11%. The estimate has moved south by 3 cents over the past seven days. The stock currently carries a Zacks Rank #3.
Meta Platforms: Shares of the social media giant jumped 15% yesterday. Meta Platforms continues to dominate social commerce through Instagram and Facebook, with strong AI-driven engagement strategies. With over 3.35 billion daily users, Meta Platforms has vast data resources to power its AI initiatives. The company is also investing heavily in AI infrastructure, which supports long-term growth. However, monetization challenges remain. META’s new platform, Threads, is still in the early stages, with ad rollout planned gradually and no meaningful revenue contribution expected in 2025. While the long-term potential remains strong, investors may want to wait for a more attractive entry point.
The Zacks Consensus Estimate for Meta Platform’s 2025 EPS implies year-over-year growth of 6.3%. The estimate for the same has moved south by 24 cents over the past seven days. The stock currently carries a Zacks Rank #3.