The ‘Magnificent Seven’ tech stocks continued their downward trend on Monday, as the Trump administration’s global tariff strategy caused turmoil in the markets for the third consecutive day. Tesla (TSLA) and Nvidia (NVDA) were among the hardest hit, with their shares dropping by 7% and 6.4% respectively. Apple (AAPL) saw a decline of up to 5.5%, while Meta (META) and Amazon (AMZN) both experienced drops of over 4%. Google (GOOG) also fell by more than 2.2%, while Microsoft (MSFT) fared the best with a decrease of just under 2%. Collectively, these declines wiped out as much as $647 billion in market capitalization from the ‘Magnificent 7’ companies.
Shortly after the market opened, Amazon, Meta, Google, and Nvidia began to recover. Amazon led the rebound with a gain of 1.6%, while the other ‘Magnificent 7’ stocks started to trim their losses.
The market’s overall decline is in response to President Trump’s tariff policies. Last week, Trump announced a plan to impose a 10% tariff on all global imports, which was implemented over the weekend, along with reciprocal tariffs on US trading partners that are set to take effect on Wednesday. This plan is expected to raise the average tariff rate to nearly 30%, the highest in over a century. As a result, Goldman Sachs raised the likelihood of a recession to 45% on Monday, as stocks across the board took a hit.
The ‘Magnificent 7’ tech giants lost $1.8 trillion in value following the tariff announcement on April 2. Apollo’s chief economist Torsten Sløk noted that these companies, which earn about half of their profits from foreign markets, would be more affected by reciprocal tariffs compared to the broader S&P 500. Sløk highlighted the potential negative impact of a trade war on global earnings, especially if Europe responds with a digital services tax.
The individual pain points for each company are also noteworthy. For instance, Wedbush’s Dan Ives pointed out that Apple, which heavily relies on Chinese manufacturing for its iPhones, could face steep tariffs. Tesla, which sources parts from outside the US, is also vulnerable to the trade tensions with China. Despite the challenges, tech investors are navigating this uncertain landscape, with some finding optimism in Nvidia’s tariff-exempt product line.
Amidst the uncertainties, the tech sector faces a difficult road ahead as Trump’s tariff policies come into effect.
The O-Canada agreement. Laura Bratton, a reporter for Yahoo Finance, can be followed on Bluesky @laurabratton.bsky.social. For any inquiries, please email her at laura.bratton@yahooinc.com. Click on the link for up-to-date stock market news and comprehensive analysis, covering impactful events in the stock market. Stay informed with the latest financial and business news from Yahoo Finance.
