In This Article:
Apple (AAPL) is leading the "Magnificent Seven" losses in premarket trading as President Trump's sweeping tariffs hit the tech sector.
Yahoo Finance Senior Reporter Alexandra Canal joins Morning Brief to examine how the Magnificent Seven and semiconductor stocks are reacting to Trump's tariffs.
To watch more expert insights and analysis on the latest market action, check out more Morning Brief here.
Apple taking the steepest losses among the MAG 7 so far pre-market here. Allie, let's get over to you. What else are we seeing in the tech trade?
Yeah, Maddie, it's a sea of red in futures trading right now. You mentioned Apple. We're down over 7% in extended trading. Now, if these levels hold at the open, it will be the largest intraday drop since September 3rd, 2020. So that just gives some context on how spooked investors are right now. Apple's overseas production hubs are particularly vulnerable to these tariff countries, given the presence in nations like China, Vietnam, and India. In fact, Apple has actually relocated some of its manufacturing facilities out of China amid these tensions with the US, but clearly with these new tariffs now in play, there's just nowhere to hide right now. We see other Magnificent Seven names also under pressure. Amazon, another big name down 7%, Alphabet off, uh, just around 4%, Meta 6%, Microsoft down 3%. Now, as a reminder, if we take a look at some of the countries that will be most impacted that a lot of these tech and semiconductor names are most exposed to. We have 34% additional tariffs on China. Now that's on top of the 20% levies that are currently in place. 32% on Taiwan, 50 46% on Vietnam, 26% on India, 36% on Thailand. Now the Taiwan government did respond to these tariffs earlier today. They said that the levies were unreasonable. They plan to reach out to the White House to negotiate. Now, within tech, it's worth noting that semiconductors are one of the few items exempt from additional tariffs, but we're still seeing some significant selling pressure there. If we flip over to a semis board on extended trading, you're going to see that names like Broadcom, similar to Nvidia, off 7%. Nvidia, one of the big leaders of the bull market over the past two years, just down 6%. TSM also down 6%. And this is because analysts have warned that despite the exemptions, there are still negative implications for the entire semi sector, particularly when we think about end demand for PCs, iPhones, and the significant amount of manufacturing that's done within China. Some analysts have said that Nvidia, and to a lesser extent Broadcom, they could potentially be insulated due to the fact that their clients are these big hyperscalers. They are spending a lot on AI, really growth at any cost. But there's also been some talk that no one's really talking about bringing bringing manufacturing into the US because many of these companies don't think that these tariffs will actually stick. So that's the next, uh, point here is that the negotiation table, that's going to be a big focus. We'll see if anything can get done before these additional tariffs are set to come into play April 9th. Back to you guys.
Thanks, Allie. Appreciate it.