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Trade War Escalation Sparks Massive Sell-Off, Nvidia, Apple, and Tesla Stocks Tumble

As a result of widespread selling on Wall Street brought on by an intensifying trade war, the "Magnificent Seven" saw their stock prices crash on Friday, including Nvidia (NVDA), Apple (AAPL), and Tesla (TSLA).

As EV manufacturer Tesla plunged more than 10% and chipmaker Nvidia fell more than 7%, the tech-heavy Nasdaq Composite (^IXIC) entered bear market territory.

The social media company Meta's (META) stock fell more than 5%. Additionally, Apple's shares fell 7% after the iPhone manufacturer wiped out over $310 billion in the previous session, marking its worst day since March 2020.

After China announced retaliatory tariffs against the US in response to President Trump's broad charges on imports from other nations, tech stocks fell for the second day in a row.

One of Wall Street's largest tech bulls warned of surging prices for electronics, including $3,500 iPhones, in response to Trump's retaliatory tariffs, which resulted in extra levies on China that raised its tariff rate to 54%.

"The concept of taking the US back to the 1980's 'manufacturing days' with these tariffs is a bad science experiment that in the process will cause an economic Armageddon in our view and crush the tech trade, AI Revolution theme, and overall industry in the process," Dan Ives, a Wedbush analyst, wrote in on Friday.

Wall Street has warned of a worldwide recession if tariffs are maintained.

Treasury Secretary Scott Bessent publicly defended Trump's trade policy in an interview that was made public on Friday.

According to Bessent, "the markets go up and down," In an interview that was taped on Thursday, Bessent told Carlson, "For everyone who thinks these market declines are all based on the President's economic policies, I can tell you that this market decline started with the Chinese AI announcement of DeepSeek."

As investors questioned the high valuations and extravagant spending on artificial intelligence, shares of Nvidia and other tech stocks fell after the Chinese startup DeepSeek released its AI chatbot in January.

Bessent, a former hedge fund manager, stated, "If I were the analyst in my old hat...what's happening with the market, I'd say it's more a Mag 7 problem, not a MAGA problem."

After Trump said that Vietnam intends to reduce its tariffs "down to ZERO" if it can reach an agreement with the US, stocks momentarily recovered some of their losses on Friday morning, raising expectations that other nations will follow suit.

The respite was brief, though, as equities ended the day close to session lows, with Apple, Nvidia, and Meta all experiencing weekly declines of double digits.

Final Thought!

In conclusion, the intensifying trade war and retaliatory tariffs have led to significant losses for major tech stocks, including Nvidia, Apple, and Tesla. These declines have raised concerns about a potential global recession, with analysts warning that ongoing tariffs could harm the tech industry and the broader economy. Additionally, if you’re a student and want to explore the world of trading and learn the in-depth concepts, then you can turn to Sample Assignment services for assignment help and expert guidance.