Tariff storm ravages Magnificent Seven as Apple nears one-year low

By Aditya Soni

(Reuters) - The "Magnificent Seven" stocks sank connected Monday, extending a marketplace rout that has wiped disconnected astir $2 trillion from their combined worth arsenic investors interest astir the fiscal fallout of U.S. President Donald Trump's planetary tariff war.

The latest descent followed cuts successful terms people for Apple and Tesla shares from 1 of Wall Street's astir bullish tech analysts, Dan Ives, who warned of a "tariff economical armageddon".

The cuts came arsenic Trump doubled down connected tariffs connected Sunday, telling investors to endure the consequences and ruling retired commercialized talks with China for now.

Tesla shares slumped 7% to $223, starring losses among the "Magnificent Seven" - a radical of high-performing tech stocks that powered Wall Street's rally for years but whose fortunes person taken a crook for the worse successful the past fewer months.

The companies person collectively shed much than $6 trillion successful marketplace worth since their highest successful precocious 2024.

Apple, Alphabet and Microsoft were trading astir one-year lows, with the iPhone shaper falling 4.8%, portion different "Mag 7" members fell betwixt 1.5% and 4.8%.

The radical has accounted for a ample chunk of the much than $5 trillion the S&P 500 scale has mislaid successful worth implicit the past 2 trading sessions.

Wedbush expert Ives said arsenic a U.S. tech institution Apple has the biggest vulnerability to American tariffs connected Chinese goods arsenic astir iPhones are assembled successful China.

He said the commercialized warfare would besides deepen Tesla's challenges arsenic the electrical automaker grapples with a increasing marque situation sparked by CEO Elon Musk's enactment of President Trump and far-right authorities successful Europe.

The informing underscores increasing fears that tariffs could compression margins and disrupt proviso chains astatine a clip erstwhile respective exertion companies are facing scrutiny implicit their large AI spending.

Ives chopped his people for Tesla shares to $315 from $550, which was 1 of the highest connected Wall Street. His caller people is inactive astir $100 supra the stock's latest trading price.

On Apple, Ives slashed his people by $75 to $250, calling the tariffs "a implicit disaster" for the tech giant, which whitethorn person to rise U.S. iPhone prices to support its lofty margins.

Apple had secured exemptions to U.S. tariffs connected China during Trump's archetypal term, but analysts are unsure if it tin unafraid waivers this clip contempt announcing $500 cardinal successful U.S. investments implicit the adjacent 4 years.

The institution has for years kept the starting terms of its iPhone Pro exemplary astatine $1,000. "The conception of making iPhones successful the U.S. is simply a non-starter successful our presumption astatine $1,000," Ives said successful a note. "Price points would determination up truthful dramatically it's hard to comprehend."