Nvidia (NVDA) and Tesla (TSLA) stocks tanked on Friday, leading the “Magnificent 7’s” decline as an escalating trade war sparked broad-based selling on Wall Street.
Nvidia was down nearly 7% midday while EV maker Tesla declined more than 9%.
Tech equities led the Nasdaq Composite (^IXIC) down as much as 5% in its second consecutive sell-off after China announced retaliatory tariffs against the US in reaction to President Trump’s sweeping levies against trading partners revealed on Wednesday afternoon.
Shares of social media platform Meta (META) sank roughly 4%. And Apple (AAPL) stock tumbled more than 5% after shares of the iPhone maker wiped out over $310 billion from its market cap in the prior session to notch its worst day since March 2020.
Trump’s retaliatory tariffs, which included additional levies on China that bring its tariff rate to 54$, prompted one of Wall Street’s biggest tech bulls to warn of surging prices for electronics, including $3,500 iPhones.
“The concept of taking the US back to the 1980’s ‘manufacturing days’ with these tariffs is a bad science experiment that in the process will cause an economic Armageddon in our view and crush the tech trade, AI Revolution theme, and overall industry in the process,” Wedbush analyst Dan Ives wrote in a note on Friday.
One silver lining came mid-morning on Friday after Trump said Vietnam wants to cut their tariffs “down to ZERO” if it can strike a deal with the US.
The Nasdaq came off the lows of the session, but Nvidia, Apple and Meta were still set to close out the week with losses of more than 10%.
