Wall Street Crisis - Apple, Tesla and Nvidia Stocks Are Crashing Amid Global Trade War Tensions
Global tech giants face unprecedented losses as Trump new tariffs and China 34% retaliatory measures spark Wall Street crisis. Major stocks continue free-falling amid supply chain disruptions.
Hadar.Goldberg
Hadar Goldberg is a talented financial journalist with a strong passion for analyzing the stock market. She has a deep understanding of financial markets and is skilled at conducting research and analysis to uncover valuable insights for her readers. Hadar is known for her ability to explain complex financial concepts in a clear and concise manner.
Apr 04 2025
The stock market is bracing for another day of steep declines following what analysts are calling the most significant market rout since the pandemic era. With trade tensions escalating between the United States and China, technology companies find themselves particularly vulnerable as global supply chains face unprecedented disruption.
The stock market is bracing for another day of steep declines following what analysts are calling the most significant market rout since the pandemic era. With trade tensions escalating between the United States and China, technology companies find themselves particularly vulnerable as global supply chains face unprecedented disruption.
Perfect Storm of Uncertainty
Wall Street is set to open sharply lower today, extending losses after an already devastating previous session. The S&P 500 plummeted 4.8% on Thursday—marking its steepest single-day decline since June 2020. This dramatic selloff was triggered by sweeping tariffs imposed by President Donald Trump on imports from around the world, sending shockwaves through global markets.
The situation intensified further when China announced retaliatory measures - a 34% tariff on all U.S. imports scheduled to take effect on April 10th. This announcement sent European markets tumbling and pushed U.S. futures down by approximately 3.2%, signaling more pain ahead for investors.
Legendary investor Bill Gross issued a stark warning amid the chaos: "Now is not the time to buy stocks. Don't try to catch a falling knife." His cautionary statement reflects the growing sentiment that this correction may have further to run.
Tech Giants Bear the Brunt of the Selloff
Apple $AAPL experienced a staggering 9.25% drop on Thursday—wiping out $313.5 billion in market capitalization, the largest single-day dollar loss in the company's history. This marked Apple's steepest percentage decline since March 2020, when pandemic fears first gripped the market.
The iPhone maker's troubles stem from its deep dependence on Chinese manufacturing operations. With the weighted tariff rate on Chinese goods now standing at 54%, Apple's extensive supply chain exposure makes it particularly vulnerable. Pre-market trading indicates Apple is set to fall another 5.3% when markets open.
Tesla $TSLA shares, which already fell 5.5% on Thursday, are poised to drop an additional 6% at the opening bell. The electric vehicle manufacturer recently published disappointing first-quarter delivery figures, briefly recovered on Wednesday, but quickly erased those gains. Since the beginning of 2025, Tesla's stock has already surrendered 35% of its value, highlighting ongoing challenges for the EV pioneer.
Nvidia $NVDA, which sank 7.8% yesterday, continues its downward trajectory with a projected 5.1% decline before market open. Despite White House clarification that the 32% tariffs on Taiwanese goods won't apply to semiconductor chips, investors remain unconvinced. Nvidia's share price is now approaching levels last seen in summer 2024, when concerns about delays in its Blackwell chip architecture first emerged.
Broader Tech Sector Pain Points
Other semiconductor stocks are weakening substantially in pre-market trading: $AMD is down 5.5%, Qualcomm is falling 6%, and Broadcom is declining 6.3%. These drops reflect growing concern about the semiconductor supply chain, which spans multiple countries now caught in escalating trade tensions.
Dell $DELL stands out as particularly hard-hit, plunging 19% yesterday—the worst performance among all S&P 500 components. Analysts at Morgan Stanley described the impact of the new tariffs on Dell's business model as "devastating." The computer hardware manufacturer is set to lose another 4.3% at market open, compounding its troubles.
Intel $INTC is projected to fall 6.4% despite reports of a new agreement with TSMC, Taiwan's semiconductor manufacturing giant, to establish a joint venture for chip production. According to reports, TSMC will hold a 20% stake in the venture, with the remainder controlled by Intel and other American companies. However, the positive development appears insufficient to overcome broader market concerns.
Consumer-Focused Companies Also Suffering
GameStop $GME fell 7% yesterday and is poised to lose another 2% today, despite Chairman Ryan Cohen purchasing an additional 500,000 shares at $21.55 each—increasing his ownership to 8.4% of the company. This vote of confidence from leadership has done little to stem the selling pressure.
Fintech companies are experiencing some of the most severe declines. Affirm $AFRM is falling 12% in pre-market trading following yesterday's 19% drop. PayPal $PYPL is down 6% after Thursday's 8.1% decline. Market analysts fear that new tariffs will accelerate inflation and economic slowdown, causing consumers to reduce borrowing and spending—directly impacting fintech business models.
Market Outlook
The "Magnificent Seven" leading technology stocks collectively lost over one trillion dollars in market value in a single day—a historic record for daily market capitalization decline. In total, U.S. markets shed approximately $3.1 trillion in value during Thursday's session.
Market analysts suggest that volatility will likely persist until there's a calming response from either the Federal Reserve or the White House to address mounting concerns. Investors are particularly worried that the new wave of tariffs will fuel inflation while simultaneously slowing economic growth—creating the difficult economic condition known as stagflation.
The unprecedented speed and scale of this wall street crisis have caught many investors off guard, raising questions about whether this represents a temporary pullback or the beginning of a more sustained downturn. As global trade relationships continue to deteriorate, market participants remain on high alert for further policy developments that could either stabilize or further destabilize financial markets.
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Please note that the article should not be considered as investment advice or marketing, and it does not take into account the personal data and requirements of any individual. It is not a substitute for the reader's own judgment, and it should not be considered as advice or recommendation for buying or selling any securities or financial products.
