The Nasdaq index lost ground on Monday as Wall Street scrambled to gauge the toll President Trump’s tariff war has taken on the “Magnificent Seven” tech giants slated to report earnings this week.
Apple, led by CEO Tim Cook and set to report on Thursday, will probably be watched closely for signs that tariffs are snarling its supply chain and squelching demand for its pricey iPhones and MacBooks. The Cupertino, Calif.-based company is reportedly trying to shift most production to India by 2026 to curb China risks.
Elsewhere, investors will probably be tracking whether Microsoft and Mark Zuckerberg’s Meta, which report Wednesday, and Amazon, set for Thursday, will plan to pour tens of billions of dollars into the bogus intelligence race despite the uncertain economic environment.
“The Street is laser focused to listen to from Big Tech titans to get a greater grasp on the demand and spending patterns abound from enterprises and consumers,” Wedbush analyst Dan Ives said in a note to clients.
The tech-heavy Nasdaq index, which on Monday dipped as much as 243 points, closed down 16 points 0.1%.
This week also brings key economic data releases that would function a barometer for Trump’s hardnosed trade tactics, including the Fed’s preferred inflation gauge on Wednesday and the roles report on Friday.
Attributable to their massive valuations, the large-cap tech firms that comprise the so-called “Mag 7” – Apple, Alphabet, Microsoft, Meta, Amazon, Tesla and Nvidia – have an outsized impact on the general market.
Their shares have been under pressure since January over concerns that Trump’s tariffs – including 145% levies on Chinese imports – could cause supply chain difficulties and better prices for consumers.
The primary quarterly results from Mag 7 firms last week produced mixed results.
Google parent Alphabet’s stock popped after the corporate revealed that AI initiatives had powered better-than-expected revenue and profit results.
Meanwhile, Tesla shares plunged after the corporate reported dismal first quarter results that included a 71% decline in net income – just for the stock to climb after Elon Musk confirmed that his work with Trump’s Department of Government Efficiency was winding down.
Apple and other tech firms are prone to avoid providing much forward-looking guidance given the uncertainty, experts told The Post. Tesla notably withdrew its full-year guidance last week.
“Tariff uncertainty is the black cloud overhang on the tech sector with semis and Apple in the attention of the Category 5 storm on this trade war with China as we might expect minimal guidance from Cupertino,” Ives added.
The broad-based S&P 500 eked out a gain and the Dow Jones Industrial Average advanced greater than 100 points, or 0.3%.
Shares of Apple and Meta rose marginally in Monday trading. Microsoft and Amazon were barely lower. Tesla was up 0.3%.
Adding to the uncertainty, Chinese tech giant Huawei is reportedly developing an AI computer chip that can compete with US-based Nvidia’s hardware. Nvidia shares traded nearly 2% lower on the news.
Earlier this yr, Wall Street welcomed news from Big Tech giants who reaffirmed their plans to spend big on AI development despite the rise of China’s DeepSeek, which claimed to have built a complicated AI model for a fraction of the associated fee of what US firms had spent on similar products.
Nonetheless, it’s unclear if further affirmations of spending plans will probably be seen as a positive given fears that Trump’s tariff disputes will cool the economy and potentially spark a recession.
“Is the uncertainty within the markets going to weaken Mag 7’s resolve to spend blindly into this dark cloud that we appear to have over the markets immediately?” said Jake Dollarhide, CEO of Longbow Asset Management.
“Any given day, investor response will be completely unique to what it was yesterday. So, I don’t know if reaffirming capex goes to be welcomed within the face of DeepSeek and tariff uncertainty,” Dollarhide said.
The Nasdaq index lost ground on Monday as Wall Street scrambled to gauge the toll President Trump’s tariff war has taken on the “Magnificent Seven” tech giants slated to report earnings this week.
Apple, led by CEO Tim Cook and set to report on Thursday, will probably be watched closely for signs that tariffs are snarling its supply chain and squelching demand for its pricey iPhones and MacBooks. The Cupertino, Calif.-based company is reportedly trying to shift most production to India by 2026 to curb China risks.
Elsewhere, investors will probably be tracking whether Microsoft and Mark Zuckerberg’s Meta, which report Wednesday, and Amazon, set for Thursday, will plan to pour tens of billions of dollars into the bogus intelligence race despite the uncertain economic environment.
“The Street is laser focused to listen to from Big Tech titans to get a greater grasp on the demand and spending patterns abound from enterprises and consumers,” Wedbush analyst Dan Ives said in a note to clients.
The tech-heavy Nasdaq index, which on Monday dipped as much as 243 points, closed down 16 points 0.1%.
This week also brings key economic data releases that would function a barometer for Trump’s hardnosed trade tactics, including the Fed’s preferred inflation gauge on Wednesday and the roles report on Friday.
Attributable to their massive valuations, the large-cap tech firms that comprise the so-called “Mag 7” – Apple, Alphabet, Microsoft, Meta, Amazon, Tesla and Nvidia – have an outsized impact on the general market.
Their shares have been under pressure since January over concerns that Trump’s tariffs – including 145% levies on Chinese imports – could cause supply chain difficulties and better prices for consumers.
The primary quarterly results from Mag 7 firms last week produced mixed results.
Google parent Alphabet’s stock popped after the corporate revealed that AI initiatives had powered better-than-expected revenue and profit results.
Meanwhile, Tesla shares plunged after the corporate reported dismal first quarter results that included a 71% decline in net income – just for the stock to climb after Elon Musk confirmed that his work with Trump’s Department of Government Efficiency was winding down.
Apple and other tech firms are prone to avoid providing much forward-looking guidance given the uncertainty, experts told The Post. Tesla notably withdrew its full-year guidance last week.
“Tariff uncertainty is the black cloud overhang on the tech sector with semis and Apple in the attention of the Category 5 storm on this trade war with China as we might expect minimal guidance from Cupertino,” Ives added.
The broad-based S&P 500 eked out a gain and the Dow Jones Industrial Average advanced greater than 100 points, or 0.3%.
Shares of Apple and Meta rose marginally in Monday trading. Microsoft and Amazon were barely lower. Tesla was up 0.3%.
Adding to the uncertainty, Chinese tech giant Huawei is reportedly developing an AI computer chip that can compete with US-based Nvidia’s hardware. Nvidia shares traded nearly 2% lower on the news.
Earlier this yr, Wall Street welcomed news from Big Tech giants who reaffirmed their plans to spend big on AI development despite the rise of China’s DeepSeek, which claimed to have built a complicated AI model for a fraction of the associated fee of what US firms had spent on similar products.
Nonetheless, it’s unclear if further affirmations of spending plans will probably be seen as a positive given fears that Trump’s tariff disputes will cool the economy and potentially spark a recession.
“Is the uncertainty within the markets going to weaken Mag 7’s resolve to spend blindly into this dark cloud that we appear to have over the markets immediately?” said Jake Dollarhide, CEO of Longbow Asset Management.
“Any given day, investor response will be completely unique to what it was yesterday. So, I don’t know if reaffirming capex goes to be welcomed within the face of DeepSeek and tariff uncertainty,” Dollarhide said.
