Nvidia slid 6%, pressured by market-wide tariff concerns, though HSBC analyst Frank Lee’s downgrade to ‘Hold’ from ‘Buy’, driven by fears of slowing growth rather than tariffs, added to the sell-off.
The ‘Magnificent Seven’ stocks tumbled on Thursday as markets reacted to the Trump administration’s sweeping new tariffs, which took effect on April 2.
Technology stocks are under pressure, but some members of the ‘Magnificent Seven’ are facing steeper losses than others. Collectively, the group is tracking toward a $1 trillion loss in market capitalization – the largest one-day loss of valuation on record for the group, according to Dow Jones Market Data cited by MarketWatch.
The latest measures impose a 25% tariff on auto imports and a minimum 10% tariff on all U.S. trading partners. Chinese goods face the steepest increase, with total levies reaching 54% after a new 34% tariff was added to the existing 20% rate. Canada and Mexico were exempt.
Trump justified the move, stating, “For nations that treat us badly, we will calculate the combined rate of all their tariffs, non-monetary barriers, and other forms of cheating.”
According to posts on X by netizens — including AccelerateFT CEO Julian Klymochko and Flexport CEO Ryan Petersen — the tariff percentages are derived from the U.S. trade deficit divided by total U.S. imports from each country.
The U.S. trade deficit narrowed in February, falling 6.1% to $122.7 billion from January’s revised record of $130.7 billion, according to the Bureau of Economic Analysis. However, accordingly to analysts, elevated imports ahead of the tariffs suggest trade will likely weigh on first-quarter GDP growth.
Microsoft (MSFT) and Google-parent Alphabet (GOOGL) saw minor losses, down 2% and 3.5%, respectively.
Nvidia (NVDA) dropped 6%, though HSBC analyst Frank Lee’s downgrade to ‘Hold’ from ‘Buy’ also contributed to the decline. Lee cited concerns about slowing growth but did not reference tariffs.
Amazon (AMZN) slipped around 8%, while Meta (META) and Tesla (TSLA) fell nearly 7%.
Apple (AAPL) led the ‘Magnificent 7’ decline, falling nearly 9% in early trade. JPMorgan analysts warned that Apple may need to raise prices by 6% to offset higher costs unless it secures an exemption.
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Read also: Trump’s Tariff War Is Accelerating A Much Larger Economic Shift, Says Economist El-Erian
