Markets experienced a steep decline on Wednesday following consecutive tariff-related news from Nvidia and the Federal Reserve that unsettled investor confidence.
The downturn began after Nvidia revealed, in a disclosure on Tuesday evening post-market, that it could face a $5.5 billion loss due to new export regulations on its H20 AI chips intended for the Chinese market. The company seems to be at the center of escalating tariff tensions between the U.S. and China.
The situation worsened when Jerome Powell, President of the Federal Reserve, warned that renewed tariffs under the Trump administration could pose a "challenging scenario" for the economy. He indicated that the Fed’s dual mandate—maintaining low unemployment and price stability—might be jeopardized if tariffs lead to rising consumer prices while hindering growth.
Following these developments, here are the stock losses of the “Magnificent 7” companies as of market close on Wednesday at 4 p.m. ET, according to Yahoo Finance:
Alphabet
- Loss in stock value since January 21: 20.51%
- Loss in stock value on April 16: 2%
Google’s parent company, Alphabet, experienced a relatively smaller drop on Wednesday but has seen about 20% of its stock value eroded since Trump took office. Nvidia overtook Alphabet as Wall Street’s third most valuable company in February. Notably, Alphabet contributed $1 million to Trump’s inauguration.
Amazon
- Loss in stock value since January 21: 22.16%
- Loss in stock value on April 16: 2.93%
The global e-commerce leader has lost approximately 22% of its stock value since Trump’s inauguration, with potential further impacts from tariffs as high as 245% on Chinese imports. Amazon also donated $1 million to Trump’s inauguration, and its founder, Jeff Bezos, was in attendance. Reports indicate that small businesses selling on Amazon are struggling due to shrinking profit margins caused by tariffs.
Apple
- Loss in stock value since January 21: 9.21%
- Loss in stock value on April 16: 3.89%
Apple shares saw a brief rally on Monday due to a surprise tariff exemption on key tech products, but the relief was short-lived. The tech giant plans to invest over $500 billion in the U.S. over the next four years. Tim Cook, Apple’s CEO, also made a $1 million personal donation to Trump’s inaugural committee.
Meta
- Loss in stock value since January 21: 15.40%
- Loss in stock value on April 16: 3.68%
Meta, the parent company of Facebook and Instagram, is currently embroiled in a significant antitrust trial with the Federal Trade Commission. The company contributed $1 million to Trump’s inauguration, and CEO Mark Zuckerberg attended the event.
Microsoft
- Loss in stock value since January 21: 9.98%
- Loss in stock value on April 16: 3.66%
Microsoft is reconsidering its performance review processes and is contemplating another round of job cuts that could occur as soon as May, following previously announced layoffs of "low performers" in January.
Nvidia
- Loss in stock value since January 21: 20.33%
- Loss in stock value on April 16: 6.87%
Nvidia, a key player in Wednesday’s market slips, faced significant share losses, at one point nearing a 10% fall before recovering toward the market’s close. The company has been hindered by new U.S. export restrictions blocking its sales of H20 AI chips meant for China, which devalued shares across the tech sector.
Tesla
- Loss in stock value since January 21: 40.08%
- Loss in stock value on April 16: 4.94%
Tesla encountered a particularly challenging period concerning sales and share value due to factors extending beyond tariffs, including backlash related to Elon Musk’s political activities and his association with the White House, leading to public protests and boycotts of the brand. Musk has contributed over $260 million to support Trump’s return to power and more than $12 million towards a failed conservative bid in Wisconsin’s Supreme Court race.