The US stock market saw a spectacular sell-off, erasing more than US$750 billion in market value from America's ‘Magnificent Seven’. The sudden meltdown occurred as investors sold stocks in response to fears over fresh tariffs that might raise costs for firms relying on foreign manufacturing. The Nasdaq decline was the steepest fall for the index since 2022, falling into correction territory.
Apple lost the most, losing a whopping US$174 billion in market value as its share price plummeted. The tech giant has been struggling with declining demand in major markets and mounting regulatory pressure.
Nvidia, the leader in AI chip production, had its market capitalization decline by close to US$140 billion as shares fell 5%. The company has lost almost a third of its value over the last two months since it hit an all-time high in January.
Tesla market loss was the worst percentage decline of the tech giants, with its shares falling 15%, its biggest fall since 2020. The electric car company has lost more than half its value since mid-December and is enduring its longest weekly string of losses as a public firm. Losses on March 10, 2025 alone totalled US$130 billion.
The selloff did not discriminate against other top tech companies, resulting in an overall tech stock crash. Microsoft and parent of Google Alphabet lost US$98 billion and US$95 billion in value. Amazon and Meta lost US$50 billion and US$70 billion in value. Alphabet and Meta both declined more than 4%, while Microsoft and Amazon both fell more than 2%.
The broader tech industry also suffered, with the Technology Select Sector SPDR Fund (XLK) declining more than 4%, formally entering correction mode after dropping over 14% from its recent high.
The semiconductor industry, a major target of the new tariffs, declined sharply too. The VanEck Semiconductor ETF (SMH) has declined more than 16% since the Trump administration came in office, with a further 5% decline on 10 March 2025.
Top chipmakers took big hits, with Marvell Technology declining 8%, while ASML Holding and Micron Technology decreasing by more than 6% each. Broadcom declined 5% due to the broader sectoral fall.
Experts caution that rising trade tensions and regulatory issues could further fuel volatility in the tech industry. While some investors view this as a short-term dip, others advise that additional tariffs and economic uncertainty may continue to weigh on tech stocks over the next few months. It remains to be seen if the tech stocks will see recovery soon or will they plummet further.