Can Magnificent Seven stocks recover as bond yields and tariff concerns mount?

_{This article was developed in collaboration between IG's editorial team and AI technology}

Tariff whiplash

US futures indicate the US Tech 100 will open 0.5% lower, extending Thursday's 4.31% decline.

The euphoria that drove the US Tech 100 to its largest single-day gain since 2008 has rapidly evaporated, with index futures pointing to further losses after Thursday's sharp reversal. Markets are experiencing their sixth consecutive session of extreme volatility, with daily price swings exceeding 5% becoming the new normal.

US bond yields take another leg higher

Following a benign CPI report showing the core measure falling to 2.8% year-on-year from 3.1% prior, US Treasury Secretary Scott Bessent stated that he saw nothing unusual in the markets.

"This disregards a 13 basis point rise in the 30-year yield to 4.87% and a 9 basis point rise in the 10-year yield to 4.42%, providing additional examples of discomfort and dislocation in a highly irritated bond market," notes Tony Sycamore, IG analyst.

"Further grumblings are being felt on the reopening this morning, with the yield on the US 30-year opening 6 basis points higher at 4.93%, edging back towards the precipice of 5%," Sycamore continues.

Tech giants retreat from record gains

After posting remarkable gains on Wednesday, the "Magnificent Seven" tech stocks reversed course:

• Apple closed down 4.24% at $190.37, surrendering nearly a third of Wednesday's historic 15.3% gain
• Nvidia fell 5.91% to $107.57 after gaining 18.7% in the previous session
• Meta plunged 6.74%, becoming the day's biggest loser among the group
• Amazon declined 5.17% as the company cautioned that tariffs will drive up prices
• Tesla dropped 7.27% to $252.40 after analysts cut price targets citing tariff risks
• Microsoft showed relative strength, falling just 2.34% to $381.35

Semiconductor concerns resurface

Chip stocks, which led Wednesday's rally, faced significant pressure:

• Advanced Micro Devices tumbled 8.41% amid renewed concerns about Taiwan Semiconductor Manufacturing's exposure to China-Taiwan tensions
• Intel fell 7.7% as analysts reassessed the impact of tariffs on its global supply chain
• The Philadelphia Semiconductor Index retreated 6.2% after its strongest one-day gain in nearly two decades

Looking ahead to earnings and economic data

Friday brings the Producer Price Index release, which follows Thursday's Consumer Price Index showing easing inflation pressures. Investors will also focus on first-quarter earnings reports from major banks including JPMorgan, Wells Fargo, and Morgan Stanley for signs of consumer health amid tariff turbulence.

The coming weeks will be crucial in determining whether Wednesday's surge represented a genuine turning point or merely a temporary relief rally in an otherwise deteriorating market. For now, extreme volatility appears to be the only certainty as markets digest rapidly evolving trade policies and their potential impact on corporate profits.