Concerns about the potential of tariffs imposed by US President Trump to trigger a recession in the economy have caused the sharpest decline in tech stocks since 2022, with the market’s seven largest players losing more than $750 billion in value in a day.
Image Source: AMD
As CNBC explains, investors were also wary of the possibility of an escalation of the so-called “trade war,” since the Trump administration’s customs policy is pitting not only long-standing opponents like China against the United States, but also its closest neighbors like Canada and Mexico. Apple lost $174 billion in capitalization in a day, while a decline in the market value of Nvidia shares by about 5% caused a loss of capitalization in the amount of $140 billion. From January’s highs, Nvidia shares have fallen by almost a third.
In percentage terms, Tesla shares fell the most, by 15%, for them the last trading session was the worst since 2020. On Monday, the company’s capitalization fell by $130 billion. In total, it has decreased by about half since the December maximum. Tesla’s business is beginning to be harmed not only by the stagnation in the electric vehicle market and the growing competition from China, but also by the political activities of Elon Musk.
The capitalization of other G7 companies did not fall as much on Monday. Microsoft, Alphabet (Google) and Amazon lost $98, $95 and $50 billion, respectively. Meta✴ Platforms fell by $70 billion. The Nasdaq index reached its six-month low. Investors are concerned that new tariffs will cause an increase in prices for goods in the US and provoke an economic recession.