The decision to suspend new tariffs for the announcement of US President Donald Trump has restored the technology market. As a result, the stock market has a huge rise in just one day. Specifically the benefits are the seven large technology companies known as 'Magnourcent Seven' – Envidia, Apple, Tesla, Microsoft, Google's main companies Alphabet, Facebook's main organization Meta and Amazon. The share price of these seven companies increased from 5.7 percent to 22.5 percent last Wednesday, so their joint market value increased to $ 9.5 trillion in one day. This increases the technology -based nasal index more than 12 percent.
Donald Trump's new counter -tariff on the worldwide stock market was declared. The new tariff, which announced from the White House on April 2, said Trump imposed 5 percent universal tariffs on all products as well as various dimensions of tariffs on different countries. As a result, the seven companies lost a total of $ 2 trillion last week.
Trump's new decision has brought some relief to the concerns among investors in the context of recent collapse and import tariffs on the stock market. However, from the end of 2021, the seven companies have lost a total of $ 9.5 trillion. Therefore, the market value of seven companies has increased to $ 9.5 trillion, but it is still much lower than the previous loss.
However, this pause of tariffs give investors the opportunity to buy these expensive shares again, whose evaluation reached a height, called sky -kissed. Because these companies are investing billions of dollars to build artificial intelligence (AI) infrastructure.
Running Point Capital Chief Investment Officer Michael Ashley Shulman said the break would allow the company's chief finance officer (CFO) and chief management officers (COOs) to breathe a little relief. At the same time, they can take the AI -related plans, which were previously postponed due to commercial tensions. '
He also said that this break becomes very important, especially when the AI chips and specialized hardware tariffs from countries like Taiwan or South Korea are at risk.
Not only did the imposition of tariffs create instability in the stock market, but also reduced the business costs behind the AI-driven tools and services of big technology companies. Wall Street will look deeply in the budget and expenditure sectors when companies start publishing quarterly income reports later this month.
On Wednesday, Google's main company Alphabet said they would invest about $ 1 billion in construction of data centers in 2021. Similarly, Microsoft has said they are already moving a few billion dollars to build AI infrastructure.
“These investments are operated through short and long -term demand,” Microsoft said.
On Wednesday, President Trump is raising Chinese tariffs from 5 percent to 120 percent. However, the tariffs imposed on imports from other countries will be reduced somewhat and some new tariffs will be postponed for 5 days, he said. This sudden decision is a dramatic change in the second customs policy in the last 24 hours, which created instability in the market.
According to analysts, Trump's decision helps the tech giants to increase the shareholder, but it will take longer to return to confidence in the technology sector. Investors are now looking forward to the upcoming quarterly income reports, where the impact of Trump's tariff policies has actually been.
References: Reuters
