Wall Street’s biggest tech names took a bruising after hours on Thursday, as investors reacted to sweeping new tariffs announced by President Trump.
The “Magnificent Seven” collectively shed more than $1 trillion in market value, with Apple Inc (NASDAQ:AAPL, ETR:APC) suffering its worst day since early 2020.
One tech sector expert likened the 'Liberation Day' onslaught to a Category 5 hurricane for the tech sector.
Apple shares plunged over 9%, wiping more than $306 billion from its valuation.
Analysts flagged the company’s heavy reliance on Chinese manufacturing (around 85% of iPhones are produced there) as a key vulnerability.
Trump’s reciprocal tariff package includes a 54% levy on Chinese imports, alongside steep new duties on goods from Vietnam, India and Taiwan, where Apple has tried to diversify production.
The pain wasn’t limited to Cupertino. Amazon and Meta both dropped nearly 9%, Nvidia fell 8%, and Microsoft lost more than 2%.
Even chipmakers, technically exempt from the tariffs, were dragged lower.
Broadcom sank 11% after warnings that higher costs could dent demand for smartphones and PCs.
For now, the sector is bracing for a long period of uncertainty.
On Apple, Dan Ives, the oft-quoted analyst at Wedbush, remains a long-term fan of the iPhone maker and thinks the current traumas will pass.
He said: "Our bullish stance on Apple as a stock remains firm and we are seeing through this current Category 5 hurricane and the long-term growth potential of this tech stalwart over the coming years.
"It's a time of panic for Apple (and tech shareholders), but if these tariffs prove to be temporary/negotiated in some form/exemptions then Apple is baking in much worse-case scenarios at current levels."
Ahead of the bell, Apple stock was flat to slightly to slightly ahead.