Wall Street on edge as more Magnificent 7 tech stocks report earnings this week
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 Wednesday, will 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 looking to shift most production to India by 2026 to curb China risks.Elsewhere, investors will 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 artificial intelligence race despite the uncertain economic environment.
“The Street is laser focused to hear from Big Tech titans to get a better 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 in Wednesday trades, was recently off 0.2% at 17,342.71.This week also brings key economic data releases that could serve as a barometer for Trump’s hardnosed trade tactics, including the Fed’s preferred inflation gauge on Wednesday and the jobs report on Friday.Due 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 overall 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 higher prices for consumers.The first quarterly results from Mag 7 companies last week produced mixed results.Google parent Alphabet’s stock popped after the company revealed that AI initiatives had powered better-than-expected revenue and profit results.Meanwhile, Te...