The elite group of U.S. tech megacaps, popularly dubbed the “Magnificent Seven,” has witnessed a sharp $2 trillion erosion in market value since April 2, following renewed trade tensions triggered by President Donald Trump’s announcement of sweeping reciprocal tariffs on nearly all trading partners. The announcement sent shockwaves through global equity markets, igniting a broad selloff across the tech-heavy Nasdaq and shaking investor sentiment.

However, a partial recovery was seen this week after Trump announced a 90-day pause on the proposed tariffs — excluding China — providing temporary relief to a market already under strain from elevated interest rates and weak earnings expectations. The move helped the group regain over $1.5 trillion in value in just a few trading sessions. Still, the recent bounce has not fully reversed the broader decline that began earlier this year.

Despite the rebound, volatility remains elevated. Nvidia emerged as the standout performer, surging nearly 25 percent in the past five trading sessions alone, fueled by renewed investor optimism around artificial intelligence infrastructure and rising global demand for AI chips. The company, which gained over 183 percent in 2024, continues to command strong interest despite a year-to-date correction of around 20 percent, partly driven by competition from China’s DeepSeek.

Tesla, by contrast, has become the biggest laggard within the group. Its stock has fallen 34 percent since the start of the year, battered by disappointing delivery numbers, ongoing price cuts, and concerns over slowing EV demand. While the stock has rebounded 13 percent in the past five days, it remains deeply in the red, raising fresh questions about the company’s near-term outlook and market positioning.

Other members of the group, including Apple, Alphabet, Meta Platforms, Amazon, and Microsoft, posted gains this week in the range of 9 to 22 percent. Yet many remain underwater for the year. Apple has lost nearly 19 percent year-to-date, while Meta is down 10 percent despite a strong five-day rally. Microsoft, which saw an 11 percent gain this week, is still down roughly 7 percent for the year. Alphabet reiterated plans to invest $75 billion into data center expansion, while Microsoft is set to exceed $80 billion in infrastructure spending — both signaling long-term confidence in AI and cloud technologies.

The current pause in tariffs has been welcomed by global markets. Equity indices in the U.S., Europe, and Asia posted broad gains this week, with the Nasdaq jumping 12 percent in a single session — its strongest one-day rally since October 2008. Analysts, however, warn that the 90-day window could be merely a temporary reprieve unless meaningful progress is made on trade negotiations. Tariffs on Chinese imports have been raised to 125 percent, keeping geopolitical risk firmly in the picture.

With macroeconomic uncertainty persisting and tech valuations still elevated, institutional investors are likely to remain cautious. While the “Magnificent Seven” continue to dominate the technology and innovation landscape, their vulnerability to policy shocks, competition, and shifting demand is once again in focus. The coming weeks will test whether the recent recovery has legs or if another wave of selling is on the horizon.