The premarket update shows the Magnificent 7 stocks facing significant declines with NVIDIA and Tesla leading the losses, down 4.89% and 6.23% respectively. NVIDIA's status as the only semiconductor stock in this group makes it susceptible to cyclical downturns. Despite current challenges, analysts see long-term growth potential. Microsoft, although down 14% year-to-date, is perceived as a 'safe haven' among these stocks due to mild impacts from tariffs, likely resulting in less volatile performance compared to more affected stocks like Amazon and Tesla amid economic uncertainty.
Amongst Magnificent 7 stocks, NVIDIA is the only semiconductor stock, making it particularly vulnerable during economic downturns, as semiconductors experience harsher cyclicality.
Microsoft is increasingly viewed as a 'safe haven' in the current market climate, seeing lower declines compared to other Magnificent 7 stocks despite its own challenges.
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