Technology stocks took a massive hit on Thursday, marking their worst trading day since the Covid pandemic, as global markets reacted sharply to President Donald Trump’s announcement of new tariffs. The tech-heavy Nasdaq Composite, which tracks many of the world’s largest technology companies, lost nearly 6% in value, its worst single-day drop in over five years. This marked a significant turning point for a sector that had previously experienced strong growth, as concerns over escalating trade tensions and the potential impact of the tariffs sent ripples through the market.
Apple, a leader among the so-called “Magnificent Seven” – a group of major technology stocks including Microsoft, Amazon, and Meta Platforms – was the worst performer, seeing its stock drop by more than 9%. This was Apple’s largest decline since 2020 and was particularly concerning given its reliance on manufacturing in China and other Asian countries. The iPhone maker’s stock suffered as investors worried that the new tariffs could disrupt its supply chains and increase the cost of its products.
Apple’s troubles rippled across its network of suppliers as well. Companies like Qorvo and Skyworks Solutions, which provide key components for Apple’s devices, plummeted by approximately 16% and 12%, respectively. As the effects of the tariff announcements continued to weigh heavily on investor sentiment, these declines reflected the broader unease surrounding the tech sector.
The impact wasn’t limited to Apple. Other prominent tech giants, part of the same “Magnificent Seven,” also saw substantial losses. Meta Platforms, Amazon, and Nvidia all fell by nearly 9%, with Nvidia, which manufactures its advanced chips in Taiwan and assembles its AI systems in Mexico, particularly vulnerable to the international tariff concerns. Tesla dropped by more than 5%, and even industry giants like Microsoft and Alphabet saw declines of 2% and 4%, respectively.
Semiconductor stocks, which are at the heart of the tech sector, also bore the brunt of the market sell-off. Companies such as Marvell Technology, Broadcom, and Lam Research saw their shares fall by at least 10%, while Micron Technology suffered a staggering 16% drop. Advanced Micro Devices (AMD) wasn’t spared, losing about 9% of its value.
Personal computer manufacturers Dell and HP were also significantly affected, with Dell witnessing a 19% drop – its worst session since 2018 – and HP’s stock sinking by about 15%. These declines highlight the widespread panic triggered by the tariffs, which investors fear could exacerbate global supply chain disruptions and increase the cost of consumer electronics.
The broader market response also highlighted a stark shift in investor sentiment. The Nasdaq’s 6% drop was its worst performance in over five years, and the index is now down more than 14% year-to-date. This sudden downturn contrasts sharply with the rapid recovery of tech stocks seen in the wake of the initial Covid-19 lockdowns, where digital and cloud-based businesses boomed. Now, however, the new wave of tariffs has cast a long shadow over the industry, creating new uncertainty and volatility.
As tech stocks grapple with the fallout from these new tariffs, investors are left to consider the broader implications for global trade and the future of technology. With the sector already facing challenges such as supply chain disruptions and rising production costs, the new tariffs could further strain tech companies’ ability to deliver products at competitive prices.
The immediate future of the tech sector is uncertain, but one thing is clear: Thursday’s sell-off has reignited concerns about the fragility of the global economy, particularly in the technology sector. Whether these losses represent a temporary setback or the beginning of a more significant market correction remains to be seen, but for now, the industry is grappling with its worst day since the height of the Covid pandemic.
