Apple, Microsoft, Tesla, Nvidia, Google parent Alphabet, Amazon, and Meta collectively lost over $750 billion in market value on Monday. This significant drop, dubbed ‘Manic Monday,’ was triggered by growing anxieties concerning potential new tariffs and overall economic uncertainty.
Leading the decline, Apple’s market capitalization decreased by a staggering $174 billion. Tesla experienced the steepest percentage drop, with its stock price falling by 15%, marking the company’s worst performance since 2020. Since mid-December, Tesla has lost more than half of its value and is coming off its longest weekly losing streak.
The technology sector, particularly semiconductor makers, is facing escalating trade tensions, with potential tariffs adding to the economic uncertainty. Concerns about new tariffs, which could raise prices for companies that depend on overseas parts and manufacturing, further exacerbated the situation. Nasdaq saw its most significant decline since 2022.
Nvidia, a prominent player in AI chipmaking, wasn’t spared, losing nearly $140 billion. The company’s value has decreased by almost a third in just two months after reaching a new peak in January.
Other major tech companies also felt the impact. Microsoft and Google parent Alphabet saw their market caps shrink by $98 billion and $95 billion, respectively. Amazon and Meta experienced losses of $50 billion and $70 billion. The Technology Select Sector SPDR Fund entered correction territory, signaling a broader downturn in the sector.
Semiconductor stocks, which are prime targets of the new levies, also suffered. The VanEck Semiconductor ETF decreased 3% during the past week, and since the inauguration, it is down over 16%, with a subsequent 5% decline on Monday.
The market’s reaction underscores the sensitivity of the tech industry to macroeconomic factors and global trade policies. Investors appear to be reacting to the potential impact of tariffs and the uncertain economic future, which has led to a widespread sell-off in the sector.
