The Magnificent 7, a group of major U.S. technology companies, is facing potential challenges due to a global economic slowdown and the risk of retaliatory trade measures, particularly from Europe. According to Torsten Sløk, chief economist at Apollo Global Management, approximately 50% of the earnings for these companies come from international markets, which is notably higher than the 41% share for the broader S&P 500 index. This reliance on foreign earnings means that the Magnificent 7 could be disproportionately affected by ongoing trade tensions. Sløk further indicated that if the trade war escalates, particularly with the implementation of digital service taxes by the European Union, the financial impact on these firms could be even more severe. Analysts emphasize that the global earnings exposure of the Magnificent 7 makes them more vulnerable compared to other sectors within the S&P 500.