The Magnificent 7 technology stocks that include Apple (AAPL), Nvidia (NVDA) and Tesla (TSLA) lost a combined $1 trillion U.S. in market capitalization on April 3.
The plunge in technology stocks was prompted by U.S. President Donald Trump’s tariff rollout that led the Nasdaq Composite index to drop nearly 6% or 1,000 points.
The U.S. imposed baseline duties of 10% on nearly all imports into the U.S. and tariffs of 34% on China, 32% on Taiwan, and 46% on Vietnam — countries where many of the largest American technology firms manufacture their products.
Taken together, the seven mega-cap technology stocks that also include Microsoft (MSFT), Amazon (AMZN), Alphabet (GOOGL) and Meta Platforms (META) lost $1 trillion U.S.
As a group, the Magnificent 7 tumbled more than 5% in the April 3 market rout. U.S. markets had their worst trading day since the Covid-19 pandemic struck in 2020.
Many Wall Street analysts were quick to criticize Trump’s new round of tariffs, saying they will be devastating for leading U.S. companies.
Dan Ives, a well-known technology analyst at Wedbush Securities, wrote in a note to clients that the new tariffs are “worse than the worst-case scenario.”
Ives added that the U.S. would face “self-inflicted economic Armageddon” if the tariffs stay as originally presented.
Among the Magnificent 7, Apple’s stock endured the biggest decline on April 3, with its share price down 10%. Apple makes the iPhone, which accounts for half its annual revenue, in China.
The stock of Apple is now down 17% this year and trading at $203.19 U.S. per share.