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Shares of the seven largest US tech companies surged on Wednesday, adding more than $1.5 trillion to their combined capitalisation following Donald Trump’s decision to temporarily suspend new tariffs. The US president’s announcement of a 90-day pause in the introduction of additional fees took some of the pressure off the market, which had been experiencing a sharp decline due to the tariff escalation in recent weeks, Reuters reports .
Nvidia, Apple, Tesla, Microsoft, Alphabet, Meta and Amazon closed the trading session on the New York Stock Exchange with a gain of between 9.68% and 22.69%. This was the main driver of the recovery for the Nasdaq index, which added more than 12%, demonstrating a steady return of investor confidence in the technology sector.
Despite the strong growth, the total losses of companies since the peak in late 2024 are still significant – around $3.4 trillion, of which two-thirds are due to the drop recorded in the last week alone. The reason was the high tariffs imposed by the Trump administration on most imported goods, including key components for the development of artificial intelligence.
The temporary suspension of new fees allowed companies to renew their focus on long-term investments in AI infrastructure. Alphabet announced plans to spend $75 billion on data centre expansion, while Microsoft confirmed its intention to invest more than $80 billion in the development of its own server base. According to Michael Ashley Shulman, Chief Investment Officer at Running Point Capital, investors see this pause as an opportunity for companies to complete strategic planning and continue large-scale investment.
Although President Trump announced a three-month suspension of tariffs on most US partners, he also raised duties on Chinese imports to 125%. For the rest of the countries, the overall tariff remains at 10%, with the prospect of further negotiations. The market is looking ahead to the corporate reporting season, which should confirm or deny whether the tech giants are able to maintain their momentum.
Given the global ambitions in the field of artificial intelligence, spending on infrastructure, talent and equipment remains critical to the long-term competitiveness of US companies. Analysts warn that any further escalation of trade disputes could shake the market again, but for now, investors are optimistic.
