By Adam Clark

Amazon.com was leading the Magnificent Seven group of stocks early on Monday as markets welcomed a U.S.-China truce on tariffs. While the deal is good news for all the megacap technology companies, it has particular resonance for the e-commerce company.

Amazon was up 7.6% in premarket trading. That outstripped gains for fellow Mag 7 members, Apple, Microsoft, Nvidia, Alphabet and Meta Platforms. Only electric-vehicle maker Tesla was narrowly gaining more, up 7.8%.

The Roundhill Magnificent Seven exchange-traded fund, which gives equal weight to the stocks, was up 5.6%.

One aspect of Amazon's benefit from the deal is obvious -- many of the sellers on its e-commerce marketplace source their goods from China and the reduction in tariffs will mean they can continue to do business.

However, there are additional benefits. About 30% of Amazon's first-party merchandise is sourced from China and Chinese advertisers spent around $8 billion on Amazon advertising in 2024, according to Raymond James estimates.

The deal should also reduce concerns about a reduction in spending on artificial-intelligence technology, which is a boon for Amazon's cloud-computing business.

Barron's has previously written that Amazon could be the best positioned of all the Magnificent Seven stocks after a fall early this year.

Write to Adam Clark at adam.clark@barrons.com

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May 12, 2025 07:38 ET (11:38 GMT)

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