Technology stocks suffered their steepest losses since the onset of the COVID-19 pandemic on Thursday, as markets reeled from President Donald Trump’s sweeping new tariff policy, triggering fears of a global trade war.
The tech-heavy Nasdaq Composite plummeted 6%, marking its worst single-day performance in over five years. The index is now down more than 14% year to date.
Leading the collapse was Apple, which tumbled more than 9%—its worst drop since 2020. With much of its production based in China and Southeast Asia, the iPhone maker bore the brunt of investor anxiety. Key Apple suppliers Qorvo and Skyworks Solutions also saw sharp declines of 16% and 12%, respectively.
Other tech titans were not spared. Meta Platforms and Amazon both slid around 9%, while Nvidia dropped nearly 8%. Nvidia, which relies on Taiwan for chip fabrication and Mexico for AI system assembly, is seen as especially vulnerable to the new tariffs. Tesla sank over 5%, while Microsoft and Alphabet fell 2% and 4%, respectively.
Semiconductor and PC manufacturers were hit hard, with Micron Technology down 16%, AMD falling 9%, and Marvell Technology, Broadcom, and Lam Research all shedding more than 10%. Dell plunged 19%—its worst day since 2018—while HP dropped about 15%.
The selloff was triggered after President Trump announced a blanket 10% tariff on all imported goods late Wednesday, alongside higher country-specific duties, including a cumulative 54% tariff on Chinese imports, 46% on Vietnamese goods, and 20% on products from the European Union. Trump framed the policy as a “declaration of economic independence” for the United States.
Global reaction was swift. China’s Ministry of Commerce condemned the move and warned of “resolute counter-measures,” urging the U.S. to cancel the “unilateral” tariff hikes.
Despite praising companies like Apple for pledging domestic investments—highlighting the tech giant’s $500 billion commitment over four years—Trump’s announcement rattled markets already weighed down by economic uncertainty and a struggling Nasdaq.
With fears of a trade war looming, investors are bracing for continued volatility in the days ahead.
