Tariff and trade wars can't slow big tech's momentum.

Motley Fool money starts now.

I'm Rachel Warren, joined today by Motley Fool analysts Lou Whiteman and John Quost.

Today we're talking Mag 7 spending plans and tariff turmoil, but we have to start with the big macro picture first.

We learned Wednesday that the U.S. economy returns to growth in Q2, U.S. gross domestic product, which is a measure of the

value of goods and services produced across the economy, rose by 3% in the second quarter.

That's up from a 0.5% contraction in the first quarter of the year, and it's actually ahead of

the consensus estimate. We also saw that consumer spending rose by more than 1% in Q2. Now, this was as exports declined

single digits and imports fell by more than 30%, reversing a major surge that we saw in Q1 of 2025.

You know, John, the big takeaway for me is consumer spending seems to be holding up well, even as

businesses have turned cautious. But the question

is, with all the headwinds, the economy is facing, do you think that this can continue?

Yes, this can absolutely continue. Rachel, consumer spending can hold up. Now, listen,

I could give you so many reasons on why to be skeptical, on why the opposite is true. First and foremost,

there's 1.2 trillion in credit card debt out there right now. That's up 30% in just the last

three years. So it would seem that consumers are spending, yes, but it also seems like they're

spending on credit. So that's a party that the music is going to end, eventually it would seem. And when

that music ends, there could be a contraction to consumer spending. That said, I do say

it can hold up because there's almost always a reason to be skeptical. And yet, consumer

spending almost always holds up. We will probably see shifts in consumer spending,

and I think that it is playing out. So you take, for example, a company such as

Kellanova. This is the company that was spun out from Kellogg's. It makes Pringles,

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