From Yahoo Finance: 2025-04-07 09:39:00

The “Magnificent Seven” tech stocks plummeted as Trump’s global tariff plan shook markets for a third day. Tesla and Nvidia dropped 7% and 6.4%, Apple fell 5.5%, Meta and Amazon sank over 4%, Google slid 2.2%, and Microsoft dipped less than 2%.

President Trump’s tariff plan includes a 10% baseline tariff on global imports, raising the average tariff rate to nearly 30%. Goldman Sachs now predicts a 45% chance of recession due to the tariffs, prompting a massive stock market decline.

The Mag 7 Big Tech firms lost $1.8 trillion in value last week. Apollo’s chief economist warns that these companies, with 50% of earnings from abroad, will suffer more from reciprocal tariffs than the S&P 500 due to their global exposure.

Apple, heavily reliant on China for iPhone production, faced its worst day since March 2020 with 54% tariffs looming. Tesla’s dependence on Chinese parts and batteries makes it vulnerable in the trade war, especially against Chinese competitor BYD.

Investors fear the impact of Trump’s tariff policy, making tech investing uncertain. Wedbush’s Dan Ives warns of economic Armageddon as the tech landscape faces its most challenging time in 25 years.

Read more: ‘Magnificent 7’ stocks continue getting hammered as Trump tariffs drag markets lower