Tech Stocks Plummet Amid Trump Tariffs and Market Fear

Apple Spearheads Drop Among Major Tech Companies

Tech stocks plunged on Thursday, following President Donald Trump’s new tariff announcements, which caused widespread market panic. Apple led the decline among the “Magnificent Seven” tech stocks, dropping nearly 9%. The iPhone manufacturer, which produces many devices in China and other Asian countries, is set for its biggest drop since 2020.

Nasdaq Composite Faces Worst Performance in Over Five Years

• The tech-focused Nasdaq Composite fell by over 5%, heading towards its worst performance in over five years.
• The index has dropped 14% so far this year.

Major Tech Companies Face Impact

• Meta Platforms and Amazon both dropped more than 7%.
• Nvidia and Tesla slumped over 5%.
• Microsoft and Alphabet each fell around 2%.

Semiconductor and Personal Computer Stocks Struggle

• Semiconductor stocks also took a hit, with Marvell Technology, Arm Holdings, and Micron Technology falling over 8%.
• Broadcom and Lam Research dropped 6%, while Advanced Micro Devices fell more than 4%.
• Personal computer makers Dell and HP experienced significant losses, with both stocks falling over 16%.

Global Trade War Fears Trigger Broader Market Downturn

The tech stock sell-off was part of a larger market downturn, sparked by fears of a global trade war after Trump announced a 10% tariff on all imported goods and higher duties targeting specific countries. Trump described the new tariffs as a “declaration of economic independence” for the U.S.

China Threatens Counter-Measures

In response, China’s Ministry of Commerce called for the immediate cancellation of the tariffs and warned of “resolute counter-measures.”

Tech-Heavy Nasdaq Faces Challenging Quarter

The tariff measures include a 34% tax on China, in addition to a previous 20% levy, a 46% duty on imports from Vietnam, and a 20% tariff on goods from the European Union. These tariffs come at a difficult time for the tech-heavy Nasdaq, which has already faced a challenging quarter, with concerns about a weakening U.S. economy weighing on stocks.

Trump Praises Tech Companies for U.S. Investments

Despite this, Trump praised some of the largest tech companies for investing in the U.S., highlighting Apple’s plan to spend $500 billion over the next four years.