Wall Street applauds the truce of the US rate as the increase in large technology stocks

The recent agreement between the United States and China to stop their tariff war is sending a clear message to investors: tensions are cooling and Big Tech is back in the center of attention.

After months of economic uncertainty, the two world powers reached a 90 -day agreement to climb commercial sanctions that have weighed in the markets for years. According to the agreement, the United States will reduce tariffs on certain Chinese products from 125% to 10%, while China agreed to reflect those reductions in US imports. A tariff, a 20% tax linked to the accusation of the United States that China contributes to the fentanyl crisis, remains in place.

Even so, the broader flexibility has caused a rapid and optimistic reaction of Wall Street. The actions of Roundhill Magnificent Seven ETF (MAGS), which represents the main technological companies such as Apple, Microsoft, Alphabet, Amazon, Meta, Nvidia and Tesla, established 6% in trade prior to trade after the announcement. That spike adds to a strong rebound in the last month, during which the fund has risen 18% since its minimum of April 8.

This is not just a reaction to the headlines. The Magnificent Seven are at the top of solid foundations. The profits of the first quarter of Microsoft, Alphabet and other technological giants not only exceeded expectations, but sent a clear message: the demand for AI, cloud computing and digital infrastructure remains strong. According to Barclays, these companies exceeded profit estimates by an average of 8%, a performance that stood out even in a volatile market environment.

Meanwhile, Goldman Sachs data shows how far the magnificent seven are compared to the rest of the market. These seven companies registered an average growth of 28% in the last quarter, while the other 493 companies in the S&P 500 achieved only 9%. That disparity emphasizes why investors once again incline technology as a safe bet for future returns.

“The impulse is returning to technology, not only because of the commercial truce, but because the foundations are supporting it,” said a senior capital strategist of an investment firm in New York. “These companies continue to deliver, and with tariffs cooling, there is one thing less than investors care.”

The moment is critical. With the uncertainty of the election year, geopolitical risks and concerns about the global growth that are still coming, markets are hungry for stability. A reduction in commercial friction between the two largest economies in the world provides exactly that, and technological actions are immediate beneficiaries.

That said, not all experts are ready to call it green light for heavy technology portfolios. Some analysts warn that a short -term demonstration could be followed by renewed volatility if commercial conversations stop or the performance of inflation pressures. Others suggest that investors consider the spread of risks in all sectors instead of continuing with the most important names.

Even so, there are little doubt that the magnificent Seven have reaffirmed their domain, both in yield and in the feeling of investors. With the career of AI warm up and the capital expenditure on increasing innovation, the Center for Attention has firmly returned to Silicon Valley giants.

As the global markets process the implications of this rate of the rate, all eyes are now in itself the truce will lead to a long -term commercial resolution, or if it is simply a temporary break in an ongoing economic pull.

Also read: American and China tariff conversations enter second day without progress, since Trump affirms “great progress”