Technology stocks plummeted Thursday after President Donald Trump’s new tariff policies sparked widespread market panic, CNBC reported.
Apple led the declines among the so-called “Magnificent Seven” group, dropping more than 8%. The iPhone maker makes its devices in China and other Asian countries. The stock is on pace for its steeper drop since 2020.
The tech heavy Nasdaq Composite dropped more than 5% and is headed for its worst season in more than five years. The index is down 14% year to date.
Other megacaps also felt the pressure, Meta Platforms and Amazon fell about 7% each, while Nvidia and Tesla slumped more than 4%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Microsoft and Alphabet both fell 1% and 3%, respectively.
The drop in technology stocks came amid a broader market selloff spurred by fears of a global trade war after Trump unveiled a blanket 10% tariff on all imported goods and a range of higher duties targeting specific countries after the bell Wednesday. He said the new tariffs would be a “declaration of economic independence” for the U.S.
Kotaku reported: Fans faced a bit of sticker shock today when Nintendo revealed the Switch 2 would cost $450, especially with some new physical games set to cost as much as $90.
But the upgrading to the Mario maker’s next console generation is set to get even worse after President Donald Trump announced a new wave of shockingly high tariffs that could push the price of a Switch 2 in the U.S. over to $600.
The Trump administration revealed a new 10 percent across-the-board tariff for all foreign imports as well as a bevy of “reciprocal” tariffs aimed at individual countries the president claims are unfairly undercutting the U.S. when it comes to trade.
Those include tariffs of 34 percent on China and up to 46 percent on Vietnam, where much of the manufacturing for the Switch 2 takes place. Cambodia, another country Nintendo sources from, would face a 49 percent tariff. The new tax hikes are set to go into effect on April 5.
NPR reported:President Trump’s sweeping tariff announcement Wednesday triggered a sharp drop in U.S. stock markets, a flashing-red warning sign of the economic fallout that’s expected to result from the widening trade war.
Around midday Thursday, the Dow Jones Industrial Average had tumbled over 1,200 points, or 3%. The broader S&P 500 index sank 4% and the tech-heavy Nasdaq index dropped nearly 5%.
Trump has ordered a minimum 10% tax on nearly all imports starting this weekend, with much higher tariffs on goods from dozens of countries, including some of the United States’ closest allies. Imports from the European Union will face a 20% tariff, while Japanese goods will be taxed at 24%.