Magnificent Seven Add $3.6 Trillion Since April Lows: Is This Rally Just Beginning?

The Magnificent Seven megacap stocks have tacked on an astonishing $3.57 trillion combined market value since April 8, powered by a sweeping reversal in global trade sentiment following the 90-day tariff pause and U.S.-China trade truce.

Notably, $1.2 trillion of that gain has occurred in just three days after the May 12 U.S.-China de-escalation.

From Tariff Panic To Trillion-Dollar Gains

The rally began after the April 9 announcement of a 90-day pause on new tariffs—just one week after the U.S. introduced broad trade measures that had roiled global markets.

Optimism built steadily as Treasury Secretary Scott Bessent hinted at major trade progress with several partners.

In May, two major diplomatic breakthroughs:

• May 7: A U.S.-UK trade agreement slashed tariffs on autos and agriculture
• May 12: A U.S.-China truce cut tariffs by 115 percentage points, replacing the expected April hikes with reduced rates of 30pp from the U.S. and 15pp from China—effective for 90 days.

“Recent positive news on U.S. trade policy, combined with easing financial conditions, has led our economists to raise their growth forecasts for the U.S., Europe, and China, and reduce the U.S. recession probability to 35% from 45%,” Goldman Sachs said in a note Wednesday.

Mag7 Market Cap Gains Since April 8

• Total Market Cap Gain: $3.57 trillion

Nasdaq 100 Posts Rare 25-Session Surge

The market shift hasn’t been confined to just mega-cap tech names.

The Nasdaq 100 Index – as tracked by the Invesco QQQ Trust, Series 1 QQQ – has now posted one of its strongest 25-session rallies in history, surging 24.5% since April 8.

That puts this advance on par with historic rebounds during major turning points:

• April 2020: +26.4%
• April 2009: +26.6%
• November 2002: +25.8%
• November 2001: +31.0%

Only a handful of periods in the last two decades have seen such rapid upward repricing, mostly during post-crisis recoveries.

“Those events all registered as market bottoms,” Goldman Sachs’ analyst Peter Callahan said.

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