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Last week, Donald Trump announced "reciprocal" tariffs that have caused significant turbulence in global markets, with the stock prices of major U.S. tech companies, known as the “Magnificent 7,” plummeting and wiping out nearly $1.8 trillion in market value.
What Happened: On Sunday, Dan Ives, an analyst from Wedbush Securities, warned that Trump’s tariffs could severely hinder the U.S. tech sector's growth.
Ives underscored the long-term impact of the trade policies, stating, “Investors know math and the sad reality” — suggesting the U.S. tech industry could be set back by a decade if these tariffs remain in place.
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Trump’s reciprocal tariff strategy, which includes a 10% universal tariff on all imports and additional duties targeting countries like China, India, and the EU, sparked a massive sell-off in the stock market.
The S&P 500, which represents some of the largest companies in the U.S., lost $5 trillion in market value, with key companies in the tech sector suffering heavy losses.
Their collective market cap erosion of Apple Inc. (NASDAQ:AAPL), Microsoft Corp. (NASDAQ:MSFT), Amazon.com Inc. (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL) (NASDAQ:GOOG), Meta Platforms Inc. (NASDAQ:META), Nvidia Corp.(NASAQ: NVDA), and Tesla Inc. (NASDAQ:TSLA) amounted to a staggering $1.8 trillion, with Apple losing $534 billion alone.
| Company | Stock Price On Wednesday ($) | Shares Outstanding (Billion) | Stock Price On Friday ($) | Market Cap on Wednesday (Billion $) | Market Cap on Friday (Billion $) | Erosion (Billion $) |
|---|---|---|---|---|---|---|
| Apple | 223.89 | 15.04 | 188.38 | 3367.31 | 2833.24 | 534.07 |
| Microsoft | 382.14 | 7.43 | 359.84 | 2839.30 | 2673.61 | 165.69 |
| Amazon | 196.01 | 10.6 | 171.00 | 2077.71 | 1812.60 | 265.11 |
| Alphabet A | 157.04 | 5.83 | 145.60 | 915.54 | 848.85 | 66.70 |
| Alphabet C | 158.86 | 5.50 | 147.74 | 873.73 | 812.57 | 61.16 |
| Meta | 583.93 | 2.19 | 504.73 | 1278.81 | 1105.36 | 173.45 |
| Nvidia | 110.42 | 24.4 | 94.31 | 2694.25 | 2301.16 | 393.08 |
| Tesla | 282.76 | 3.22 | 239.43 | 910.49 | 770.96 | 139.52 |
Why It Matters: The tariffs have far-reaching consequences, especially for the U.S. tech sector, which relies heavily on global supply chains. Apple, for example, could see the price of an iPhone 16 Pro Max soar from $1,599 to around $2,300, according to industry analysts.