The market value of the "Magnificent Seven" stocks was set to increase by more than $1 trillion on Wednesday following U.S. President Donald Trump's approval of a 90-day tariff pause. This move provided relief to tech giants like Nvidia, Apple, Tesla, and Microsoft that had experienced declines in recent trading sessions.

These companies, known for their strong performance in the tech sector, have faced challenges in recent months due to uncertainties surrounding AI investments and the trade war with imposed tariffs. The collective market value of these companies had dropped by approximately $5 trillion since late 2024, with significant losses occurring after Trump imposed tariffs on imports from countries like China, a major player in the tech market.

The temporary relief from new tariffs announced by Trump was seen as a positive development for tech stocks, although uncertainties related to China still lingered. This pause in tariffs provided an opportunity for businesses to regroup and plan strategically amid the ongoing trade tensions.

In response to the tariff developments, Alphabet reaffirmed its commitment to investing around $75 billion this year to enhance data center capacity and strengthen its artificial intelligence initiatives. This move reflected the company's confidence in the continuous growth of the tech sector.

The market rally driven by the surge in these tech stocks, with gains between 7.8% and 13%, resulted in an 8% increase in the Nasdaq index. The positive trend in the market was a welcomed change for investors and analysts, offering a momentary respite from the uncertainties that had been looming over the tech industry.