Investing
Live: Magnificent 7 Stocks (MAGS) Apple (Nasdaq: AAPL), Tesla (Nasdaq: TSLA) Shrug Off Trade War Escalation
Published:
Last Updated:
24/7 Wall St. Insights:
-
Following President Trump hiking tariffs on China another 50%, Beijing responded by raising tariffs on U.S. goods to 84%.
-
Despite the escalating tensions and stock futures falling, Magnificent 7 stocks are shrugging off the news and rising in premarket trading.
-
If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.
Live Updates
Live Coverage Has Ended
Market Uncertainly Takes a Quick Breather
As the VIX tanked 35% today, Goldman Sachs scrapped its recession forecast, following Trump’s tariff delay for 90 days, sparing all but China. Earlier, it pegged recession odds at 45%, slashed GDP to 0.5%, and warned of a downturn if tariffs soared.
Bessent Speaking to Press
Scott Bessent is speaking to the press now and has said Trump “goaded China into a bad position.” China will now face even more punitive tariffs while the rest of the world can negotiate form 10% tariffs.
It appears Bessent ‘won’ a skirmish in the White House with trade hawks like Peter Navarro.
Breaking: 90-Day Pause on Tariffs
Trump just announced a 90-day pause on reciprocal tariffs for many countries.
Some, like China, that have retaliated will be excluded. The Nasdaq is up 8.4% on the news.
Stock Market Moves Lower, But Big Tech Still Hot
While the broad market erased the gains made when trading started, the Magnificent Seven still is holding on, with Roundhill Mag 7 ETF (MAGS) up 1.53% as of 11:50 am. Apple (+3.94%) is leading the way and pulling the Nasdaq higher today followed by NVIDIA ( +2.56%) and Microsoft ((+2.12%).
10 Year Treasure Yield Increasing
Tariffs are not only affecting the stock market this week. The 10 year treasure yield has been soaring over the past few days. Monday the yield for a 10 year note was 3.88%, but the yield is not approaching 4.40% as of 10.40 am.
The 10-year Treasury note yield is rising possibly from China unloading holdings to support its yuan or counter U.S. tariffs.
European Union Proposes "Countermeasures" Against the US
After 104% tariffs went into effect on China this morning, the European Union Commission announced it will impose countermeasures against the United States that will commence on April 15th. The measure would be around $24.3 billion on products like soybeans, orange juice and motorcycles.
If you thought yesterday’s market action was wild, prepare for more of the same today. After President Trump imposed additional tariffs on China yesterday that brought the total import duties on the country up to 104%, China just retaliated with new tariffs of its own, hiking them an additional 50% for a total of 84% on American goods.
Beijing says it is willing to “fight to the end” in this trade war and it looks like markets are bracing for the worst.
Dow Jones Industrial Average opened .24%, while futures for the S&P 500 and Nasdaq are up slightly at open. The Roundhill Magnificent Seven ETF (MAGS) is up 1.90%
All of the Magnificent 7 stocks took it on the chin yesterday, but Apple (NASDAQ:AAPL) was the biggest loser, falling 5%, followed by Tesla (NASDAQ:TSLA) dropping 4.9% and Amazon (NASDAQ:AMZN) 2.6%.
So far, though, trading shows the tech stocks pretty much shrugging off the latest announcement with the entire group except Microsoft (NASDAQ:MSFT) moving higher in early trading.
While Apple is obviously closely tied to the China trade, its stock swung from being down to moving up 3.11% heading into the morning bell. Tesla is up 4%, Amazon is 2% higher, and Nvidia (NASDAQ:NVDA) is jumping 4%
Apple could have most to lose
Apple has been scrambling to shift manufacturing away from China as quickly as possible and The Wall Street Journal reported it would be moving as much manufacturing as it could to India.
While India is also getting hit with new tariffs from Trump, at 27%, they are far more manageable than the doubling of rates China just got hit with. The iPhone, which makes up half of Apple’s revenue, is primarily sourced from China and the rising trade tensions that suddenly opened up into a “hot war” with tariffs has seen AAPL stock plummet. Shares are down 31% year-to-date, but they’ve lost 22% of their value in just the last week.
Trump said yesterday he thinks the iPhone can be wholly built in the U.S. because “we have the labor, we have the workforce, we have the resources” to do so. But such shifts can’t happen overnight and in fact take several years. Also, it would raise the cost of an iPhone due to the higher labor costs.
With China also imposing new export restrictions on rare earth minerals, manufacturing the iPhone domestically could become more difficult. Rare earth minerals are only a small fraction of the iPhone, but they play critical roles in its speakers, Taptic Engine, and color display. Apple, though, has moved to use 100% recycled rare earth elements in its smartphone.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
