Magnificent Seven: Weekly Review

Recent Performance

Major U.S. indices were mixed this week as tech gains were offset by lingering volatility. Apple and Nvidia led Nasdaq’s bounce, while Tesla lagged. But even with its contributions to the Nasdaq jump, Apple continued to struggle – trading back under $200 at multiple points throughout the week and down over 25% from its early-2025 peak – as investors fretted over new tariffs on iPhone production and weaker consumer demand. Microsoft held around the high-$490s, buoyed by enthusiasm for its AI strategy. Wells Fargo reiterated an “Overweight” on Microsoft, and highlighted the company’s $100 billion AI revenue potential by FY2029. Nvidia continued its surge, hitting fresh highs mid-week, after Loop Capital boosted Nvidia’s 12‑month target to $250. Amazon climbed above $220 today, helped by a robust Q1 and analyst upgrades. Alphabet recovered about 2–3% to ~$174–$178 after bottoming out in April; renewed confidence was driven by accelerating Google Cloud growth and bullish analyst commentary. Meta also rallied, testing record levels. This week, Tesla underperformed the group. Shares fell over the week after a volatile June. Key Tesla headwinds remain: soft global EV deliveries, fierce price cuts by competitors, and CEO Elon Musk’s political entanglements.

Market Sentiment

Overall market mood shifted from fear to cautious optimism. The broad S&P 500 and tech-heavy Nasdaq both closed at record highs today, as easing trade-war worries and solid earnings rekindled bullishness. Volatility (VIX) retreated, and investor surveys showed bearish sentiment receding. Analysts emphasize that strong corporate results underpin this rally – first-quarter S&P 500 profits beat forecasts by a wide margin – but many also caution that valuations are high. Tesla’s outsized P/E ratio was noted as “lofty” even relative to other tech titans.

Macroeconomic/Political Factors

Several broader developments moved markets. The Fed left rates unchanged at its mid-June meeting. U.S. consumer prices rose 2.4% YoY in May – higher than April – keeping Fed caution alive. Meanwhile, trade policy uncertainties eased. The 90-day US-China tariff “truce” was extended. Geopolitically, early-week tensions with Iran briefly spiked oil above ~$77. Overall, economists note that if trade remains calm and Fed policy eventually pivots, large-cap tech could resume leadership.

Company Highlights

Several stock-specific events also influenced prices. Apple disclosed a $490 million settlement over alleged misstatements about China iPhone demand. Microsoft remains focused on cloud/AI; plowing roughly $80 billion into AI infrastructure and reported robust Azure/365 growth. Nvidia is managing geopolitical risks by working with regulators. Amazon announced a major logistics expansion. Alphabet faced another antitrust headwind, while also receiving bullish mentions from analysts. Meta’s large acquisition of Scale AI is expected to speed development of its Llama-4 model. Tesla, meanwhile, accelerated its robotaxi rollout. Collectively, these developments reinforced the Mag Seven’s commitment to innovation and scale, while also highlighting the diverse risks and catalysts shaping their near-term performance.

Looking Ahead

Most analysts expect the tech rally to continue if the macro backdrop remains benign. AI and cloud computing still offer powerful secular growth engines. Meta, trading around 25x earnings, still has upside. However, signs of market overheating argue for vigilance. Key variables include inflation, Fed policy, and the status of U.S.-China trade relations. By late June the Mag Seven’s fundamentals largely justify their premium – but the next leg of gains may depend on clearer signals from policymakers and corporate results.

Conclusion

In the past week the “Magnificent 7” stocks showed a divergence: leaders like Nvidia and Meta pushed higher on AI optimism, while more cyclical names like Apple and Tesla faced risk-off pressure. Going forward, these companies’ deep focus on AI, cloud, and new platforms suggests their long-term growth stories are intact – yet short-term volatility is almost certain. Overall, these large tech names should continue to trade at lofty levels, but strategic missteps or macro shocks could trigger sharp pulls.

Written by Joseph Loughran

Research curated using LLM’s for deep research, financial models, and publicly available insights from leading sources including Bloomberg, Reuters, CNBC, and official corporate data.