TRUMP’S DEALS HELP NVIDIA JOIN THE ‘MAGNIFICENT SEVEN’ STOCKS RECOVERING LOSSES
The “Magnificent Seven” stocks — which include Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and Tesla — were a major force behind the S&P 500’s impressive 23.31% rise in 2024.
However, these stocks were also among the most affected by President Donald Trump’s tariffs. Companies with a strong dependence on global supply chains and exports, like Apple and Nvidia, experienced the greatest setbacks. Meanwhile, firms such as Meta and Microsoft, whose revenues are more focused on digital services like advertising and enterprise software, managed to see their shares climb this year.
On Wednesday, Nvidia became the third member of the Magnificent Seven, alongside Meta and Microsoft, to post gains for the year so far. This is notable because Nvidia, as a chipmaker, deals in tangible goods that are typically more exposed to trade restrictions.
Nvidia’s rebound points to a more favorable business climate created by Trump’s tariff negotiations and broader international relationships, such as those being developed with Saudi Arabia during his state visit. Still, the situation highlights the ongoing market volatility in 2024, as the momentum that fueled this year’s strong rally could quickly fade, particularly around events like Trump’s “Liberation Day.”