Magnificent 7 Stocks Add $250 Billion In Value After Benign Inflation As Traders Rush To Buy Dips

The market’s biggest tech giants, often referred to as the Magnificent Seven, collectively added over $250 billion in market capitalization during Wednesday morning trading.

Investors piled back into high-growth stocks following the softer-than-expected inflation report.

The elite tech group of stocks was in free fall just days ago, down more than 20% from their highs and officially entering a bear market. Since its December 2024 market cap peak of over $17 trillion, Magnificent Seven has shed $3.3 trillion value in recent weeks.

The question now: Is this a true turnaround, or just a temporary relief rally?

Investors Rush To Buy Magnificent 7 As Inflation Cools

The catalyst for the dramatic rebound was February's Consumer Price Index report, which showed inflation cooling faster than expected.

Headline CPI eased to 2.8% year-over-year, down from 3%, and core CPI slipped from 3.2% to 3.1%, also below forecasts.

The outcome led markets to ramp up bets that the Federal Reserve may soon resume cutting interest rates. With inflation cooling, the CME FedWatch Tool shows traders fully pricing in three rate cuts by year-end.

That was enough to trigger a wave of dip-buying in the battered Magnificent Seven, a group that had entered a technical bear market earlier this week after the Roundhill Magnificent Seven ETF plunged 22% year-to-date.

Magnificent Seven Rebound: Nvidia, Tesla Rally

The total market capitalization change for the Magnificent Seven stocks by 10:30 a.m. ET Wednesday is $258 billion.

Here's a breakdown with additional context on each company’s movements:

• Nvidia Corp. (NASDAQ:NVDA) added $151.26 billion as its stock surged 5.7%. The semiconductor giant remains 25% below its record highs set in early January 2025.
• Tesla Inc. (NASDAQ:TSLA) followed with a $52 billion increase, up 7%.
• Meta Platforms Inc. (NASDAQ:META) increased $45.43 billion, climbing 3%.
• Amazon.com Inc. (NASDAQ:AMZN) grew $23.33 billion, up 1.11%.
• Alphabet Inc. (NASDAQ:GOOGKL) added $14.27 billion, rising 0.7%
• Microsoft Corp. (NASDAQ:MSFT) saw a modest $1.41 billion gain, edging 0.1% higher.
• Apple Inc. (NASDAQ:AAPL) was the only major laggard, shedding $29.19 billion, dropping 0.9%,

Read Now:

• Alibaba Chair Says AI Total Addressable Market Is $10 Trillion, Expects Benefits Via Its Cloud Business

Image: Shutterstock