Valuation Pressure and Tariff Fears Weighed Heavily
In early 2025, the Magnificent Seven—Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla—faced a significant pullback. Their lofty valuations collided with fears over President Trump’s sweeping tariffs, prompting fund managers in a BofA survey to favor gold over tech for the first time in two years.
Trade Truce Spurs a Tech Turnaround
Since the White House paused key tariffs on April 9, these growth giants have rallied alongside broader indices. Art Hogan of B. Riley Wealth notes that as markets shift from de-risking to a risk-on stance, “all things technology—and specifically the Mag Seven—tend to lead the charge.”
Holders of ETFs with concentrated tech exposure have seen relative gains; for instance, SPDR’s sector weightings highlight technology’s outsized role in benchmark funds. Investors can track these allocations through the ETF Sector Weighting API to see how the Magnificent Seven influence fund composition.
Upcoming Earnings: The Next Test
This week four of the group report results:

Wednesday: Microsoft, Meta

Thursday: Apple, Amazon

Their earnings beats will determine whether the recent bounce is sustainable or merely a relief rally. Historical trends show that missing consecutive stellar days can dampen returns—underscoring the importance of these reports for tech-heavy portfolios.
Can Tech Sustain the Rally?
Key factors to watch:

Earnings Surprises: Will revenue and margin guidance outshine analyst expectations?

Tariff Clarity: Any reversal or extension of trade reprieves could reintroduce volatility.

Rotation Risk: As valuations climb, profit-taking could shift flows into cyclicals or defensive sectors.