Tech Titans Experience $750B Market Downturn Amid Tariff Tensions
The ‘Magnificent Seven’ of the tech industry recently faced a staggering $750 billion collective market value loss. This significant downturn was a result of growing investor concerns over President Trump’s aggressive tariff policies. Leading the decline was Tesla with a 15% single-day plunge, followed closely by Apple, which saw a $174 billion reduction in market capitalization. Investors are particularly worried about Apple due to the company’s heavy reliance on Chinese manufacturing.
The tech selloff was instigated by Trump’s implementation of sweeping tariffs. These included a 54% duty on Chinese imports and substantial tariffs on other key manufacturing hubs. The affected countries include:
- India – 26%
- Vietnam – 46%
As a result, Microsoft lost $98 billion in market value, Alphabet dropped $95 billion, while Meta and Amazon shed $70 billion and $50 billion respectively.
The Nasdaq Composite recorded its steepest drop since 2022. The Technology Select Sector SPDR Fund fell by more than 4%, officially entering correction territory. Analysts attribute this decline to legitimate concerns about increased manufacturing costs for companies dependent on overseas production. This is particularly concerning as many tech giants have significant exposure to the affected regions.
Source: Business Standard