The current earnings season is in full swing, with the Magnificent 7 companies beginning to release their latest financial results. However, the market is experiencing volatility due to former US president Donald Trump's tariff policies, raising concerns about a potential recession. The S&P 500 is down over 10% year-to-date, and the Nasdaq has fallen by nearly 16% during the same period. All Magnificent 7 companies, including Nvidia, Apple, Microsoft, Meta, Alphabet, Amazon, and Tesla, are trading negatively year-to-date.

These tech giants faced a challenging start to the year, triggered by the release of a more affordable AI model from the Chinese startup DeepSeek, which sparked fears about the spending levels of major US tech companies in the AI sector. This apprehension influenced the first earnings season of 2025, and high expectations for the Mag 7's financial performance seemed to lead to some disappointment when the companies reported in January and February. Trump's tariffs have further increased market volatility, putting additional strain on these stocks as investors assess the impact on supply chains and business costs.

Investment experts from AJ Bell noted that the Mag 7 have collectively lost nearly $4 trillion in stock market capitalization since their combined valuation reached $18.4 trillion on December 24, marking a one-fifth decrease. Despite this significant drop, their combined worth remains 5% higher than it was a year ago. The experts suggest it's premature to declare a loss of faith in these companies, even with gold's value rising by a third over the past year, indicating a potential shift in market sentiment. Given that this group represents almost one-third of the S&P 500's total stock market valuation, any change in sentiment toward them could have far-reaching implications.

In related news, the Trump Store is promoting a $47 “Presidential Gold Aurum Note” as an investment opportunity amid rising gold prices, which have been spurred by investor concerns related to Trump's tariffs. The note contains 100 mg of .9999 pure gold, valued at approximately $11. The Trump Store claims that the note is made in the United States and “will only go up in value.” The promotion of this gold note comes as gold prices have risen by over 20% this year, reaching a record $3,400 per troy ounce, as investors seek safer alternatives to stocks and bonds.

The online Trump Store, which offers MAGA and presidential-themed merchandise, generated an estimated $2.7 million in sales in 2023. While Trump's attorneys maintain that his business activities do not violate ethical standards, critics argue that profiting from gold price swings raises questions about whether his actions are in the public's interest or his own. The Trump Store's history includes controversies such as selling merchandise featuring government landmarks, which was later removed due to scrutiny.