The stock markets experienced a significant downturn on Wednesday following alarming signals from Nvidia and the US Federal Reserve, which shook investor confidence with renewed concerns over tariffs.
The sell-off was triggered by Nvidia’s announcement late Tuesday evening, after the markets had closed, warning of a potential $5.5 billion (approximately €4.8 billion) loss due to new export restrictions affecting its H20 AI chips, which were developed specifically for the Chinese market.
Nvidia now finds itself entangled in the growing tensions between the United States and China over trade barriers.
Losses deepened further when Federal Reserve Chair Jerome Powell issued a stark warning that the return of tariffs under a potential Trump administration could pose a “challenging scenario” for the US economy. Powell emphasised that the Fed’s dual mandate – ensuring low unemployment and price stability – might be threatened if tariffs drive up consumer prices while simultaneously hampering growth.
Here’s a breakdown of how much each of the so-called “Magnificent Seven” – Alphabet, Microsoft, Apple, Amazon, Nvidia, Tesla and Meta – lost in stock value by 4:00 p.m. Eastern Time on Wednesday, according to Yahoo Finance. The comparison also includes their losses since Donald Trump’s first presidency began.
Alphabet
Google’s parent company, Alphabet, suffered a relatively moderate drop on Wednesday, yet it has lost around 20% of its share value since Trump first took office. In February, Nvidia overtook Alphabet as the third most valuable firm on Wall Street.
It’s worth noting that Alphabet contributed $1 million to Trump’s inaugural celebrations.
Amazon
Amazon, the global e-commerce leader, has also lost about one-fifth of its stock value since Trump became president. The company remains vulnerable to tariffs, particularly those on Chinese imports, which have reached up to 245%.
Amazon also donated $1 million to Trump’s inauguration, with founder and executive chairman Jeff Bezos attending the event. Meanwhile, small businesses selling on Amazon have told Business Insider that they’re struggling to survive as their already thin profit margins are further eroded by tariff costs.
Apple
Apple saw a brief stock rally on Monday following a surprise exemption on key tech products from import tariffs. However, that relief proved to be short-lived.
The tech giant has announced plans to invest over $500 billion in the US over the next four years. CEO Tim Cook personally donated $1 million to Trump’s inauguration committee and attended the ceremony.
Meta
Meta, the parent company of Facebook and Instagram, is currently facing a major antitrust lawsuit brought by the Federal Trade Commission, which began on Monday and could last up to eight weeks.
Like other major tech firms, Meta donated $1 million to Trump’s inauguration. CEO Mark Zuckerberg was also present at the event.
Microsoft
Microsoft is reassessing its employee performance evaluations and is reportedly considering another round of job cuts, which could take place as early as May. This would follow January’s layoffs targeting so-called “low performers.”
Nvidia
Nvidia, the chipmaker at the centre of Wednesday’s turbulence, endured some of the steepest losses of the day, with its share price dropping by up to 10% at one point before recovering slightly by market close.
The semiconductor company revealed that new US export regulations effectively prevent it from selling its H20 AI chips to China, placing additional pressure on tech sector stocks.
Tesla
Tesla has had an especially difficult year in terms of both revenue and share value, and not solely due to tariffs or consumer sentiment. The electric vehicle company has faced broader challenges in maintaining momentum and investor confidence.