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Apple hits $4 trillion as Mag 7 rally lifts Nasdaq to record highs
Summary
- Surging Magnificent Seven: Surging Magnificent Seven: Apple breaches $4 trillion valuation after new record high, Microsoft jumps 2%, NVIDIA spikes 5% to new all-time high
- Catalysts: Apple iPhone 17 sales outsell iPhone 16, Microsoft agrees 27% ownership stake in Open AI, worth $135 billion, NVIDIA takes $1 billion investment in Nokia Oyj as President Trump says he will talk to China about Blackwell chip
- 36 Hour Focus: Q3 Earnings from Alphabet, Microsoft, Meta (Wednesday after close) Amazon, Apple (Thursday after close)
Can the Mag 7 rally keep pushing US indices to new highs?
Yesterday news flow and optimism surrounding AI’s ability to continue to generate profits for the mega US technology companies dubbed the Magnificent Seven (NVIDIA, Microsoft, Apple, Meta, Alphabet, Amazon, Tesla) due to their enormous capitalisations and market influence sent the Nasdaq 100 to a new record high.
That up move has continued this morning with the Nasdaq 100 touching 26137 at time of writing (0530 GMT), taking the rally from its October 10th lows at 24002.7 to 8.9%. These companies account for roughly 43% of the Nasdaq 100 weighting so it is no surprise that movement in these individual stocks matters to the wider market.
Nasdaq 100 4 Hour Chart:
What were the key Mag 7 highlights on Tuesday?
Apple became only the third company in history to break into the $4 trillion valuation club after Counterpoint Research released a report stating initial iPhone 17 sales were 14% above that of its iPhone 16 predecessor, increasing expectations that this could be the start of a new customer upgrade cycle. Its share price traded to a new record at 26979.
Microsoft announced they had finalised an agreement that gives them a 27% ownership stake in Open AI, which is worth around $135 billion and provides the world’s second largest company with access to the Open AI technology until 2032, a move that could potentially lead to a big increase in future revenue.
NVIDIA announced a $1 billion investment in Nokia Oyj and will supply the company with chips that will accelerate Nokia’s software for 5G and 6G networks and look at ways to combine data centre technology, according to Bloomberg. This morning President Trump announced he talk to President Xi at their face-to-face summit tomorrow above NVIDIA’s Blackwell chip boosting the share price further.
What impact could Mag 7 Q3 earnings have on market sentiment?
It is a big 36 hours ahead for these mega technology stocks and for sentiment towards major US stock indices with Alphabet, Microsoft and Meta reporting their earnings after the close tonight and Amazon and Apple reporting after the close tomorrow.
With these individual companies and US indices printing new record highs these results could have an outsized impact on sentiment and direction moving forward.
While traders could be looking to judge actual profits/revenue against expectations, they may also be focused on whether the results can justify the billions of dollars being spent on developing AI infrastructure.
The performance of Microsoft, Alphabet and Amazon’s cloud computing businesses could be a crucial focal point.
Microsoft daily chart:
Microsoft shares currently sit just below their all time high of 56157 posted on July 31st. This level could be the first resistance to focus on as the results are released. A break and close above this level could pave the way for moves higher towards 58278, which is the 138.2% Fibonacci extension (October 10th low to October 28th high). While on the downside, the first support could be 53789, the 38% retracement (October 10th low to October 28th high), then 52274, which is the 61.8% retracement.
For Apple, updates on current iPhone 17 sales may be the focus to see if it the results back up expected sales performance increases, this will include updates on how new lines have been performing in China, which has been a problem due to the recent trade tensions through 2025.
Apple daily chart:
Apple became the last of the Magnificent Seven stocks to post a new record high in 2025 when it broke above 25995 (Dec 24th high) on October 20th and it has continued its up move from that point. While this level could be seen as the first support on any move lower, the rising Bollinger mid-average, currently at 25788 could be the next downside focus. Any breaks below these levels could open further dips towards 24348 (Oct 10th low). To the upside, the first meaningful resistance could be 28016, which is the 138.2% Fibonacci extension (Oct 10th low to Oct 28th high). A break above this level could open the way for moves towards 28642 (161.8% extension).
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