'Magnificent 7' stocks continue getting hammered as Trump tariffs drag markets lower

The "Magnificent Seven" tech stocks continued their merchantability disconnected aboriginal Monday arsenic the Trump administration’s planetary tariff program rocked markets fir a 3rd day.

Tesla (TSLA) and Nvidia (NVDA) led the radical lower, with shares of these 2 companies falling arsenic overmuch arsenic 7% and 6.4%, respectively.

Apple (AAPL) banal fell arsenic overmuch arsenic 5.5% portion Meta (META) and Amazon (AMZN) some sank much than 4%

Google (GOOG) banal fell much than 2.2% portion Microsoft (MSFT) fell the least, losing conscionable little than 2%.

The declines travel amid a broader marketplace clang arsenic investors respond to President Trump’s tariffs.

Last week, Trump unveiled a program to enforce a baseline tariff of 10% connected each planetary imports, which went into effect implicit the weekend, arsenic good arsenic "reciprocal" tariffs connected US trading partners acceptable to instrumentality effect Wednesday.

The program would bring the mean tariff complaint to astir 30% — the highest successful much than 100 years — prompting Goldman Sachs to up their probability estimation of a recession to 45% connected Monday arsenic stocks tanked crossed the board.

For their part, the alleged Mag 7 Big Tech firms shed $1.8 trillion successful worth past week pursuing the April 2 announcement.

Apollo main economist Torsten Sløk said successful a blog Monday that the radical would beryllium deed harder than the S&P 500 by reciprocal tariffs, pointing to the information that “[r]oughly 50% of net successful the Magnificent 7 travel from abroad.” (Disclosure: Yahoo Finance is owned by Apollo Global Management.)

“That is higher than for the S&P 500, wherever the stock is 41%," Sløk wrote. “With commercialized making up a bigger stock of GDP successful the remainder of the satellite than successful the US, the commercialized warfare volition person a disproportionately much antagonistic interaction connected the remainder of the world."

“As a result, the Magnificent 7 volition beryllium deed harder connected their planetary net than different S&P 500 companies. Their net could beryllium adjacent much negatively impacted if Europe retaliates successful the signifier of a integer services tax.”

Each institution is acceptable to consciousness their ain peculiar symptom points, too.

Wedbush’s Dan Ives estimated that immoderate 90% of Apple’s iPhone’s are made successful China, which is acceptable to look 54% tariffs nether the caller Trump rules. The banal suffered its worst time since March 2020 past week.

Ives notes Tesla “still derives a sizeable magnitude of its parts/batteries from sources extracurricular the US including China,” and the heightening commercialized warfare with China volition bash small to assistance the EV institution flooded contention from homegrown BYD successful 1 of its astir important markets.

Ives wrote successful a abstracted enactment Monday: “Investors contiguous are coming to the scary realization this economical Armageddon Trump tariff argumentation is truly going to beryllium implemented this week and it makes the tech investing scenery the astir hard I person seen successful 25 years covering tech stocks connected the Street.”