Tech giants Nvidia, Apple, Tesla stocks plummet as trade war escalates, market sentiment negative.
From Yahoo Finance: 2025-04-04 16:28:00
Tech giants Nvidia, Apple, and Tesla led Wall Street’s “Magnificent Seven” decline on Friday. Nvidia fell 7%, Tesla dropped over 10%, and Apple lost 7%, wiping out $310 billion in market cap. The tech-heavy Nasdaq Composite entered bear market territory as social media platform Meta also sank over 5%.
China’s retaliatory tariffs against the US in response to Trump’s levies caused a second day of losses for tech stocks. Trump’s tariffs included raising China’s rate to 54%, prompting warnings of surging electronics prices. Analysts fear a potential economic Armageddon and recession if tariffs remain.
Treasury Secretary Bessent defended Trump’s trade policies amid market declines. He attributed the market drop to Chinese AI announcement of DeepSeek, impacting tech stocks like Nvidia. Investors raised concerns about high valuations and AI spending after Chinese startup DeepSeek’s AI chatbot release in January.
Bessent suggested the market decline was more of a Mag 7 problem than a MAGA problem. Stocks briefly recovered after Trump mentioned Vietnam’s interest in cutting tariffs to zero. Hope arose for more trade deals, but overall, fears of economic impact from tariffs continue to loom over the market.