The “Magnificent Seven” equities plummeted Monday, continuing a market crash that has reduced their total worth by almost $2 trillion as investors fear the financial consequences of U.S. President Donald Trump’s international trade battle.
One of Wall Street’s most optimistic tech analysts, Dan Ives, warned of a “tariff economic armageddon” and lowered his price target for Apple and Tesla shares, which precipitated the most recent decline.
The reductions followed Trump’s Sunday redoubling of duties, warning investors to bear the consequences and excluding trade negotiations with China for the time being.
The “Magnificent Seven”—a collection of high-performing tech firms that propelled Wall Street’s surge for years—saw their fortunes turn south in recent months, with Tesla shares (TSLA.O) leading the pack with a 7% decline to $223.
Since their high in late 2024, the firms’ combined market value has decreased by over $6 trillion.
With the iPhone manufacturer down 4.8% and the other “Mag 7” members tumbling 1.5% to 4.8%, Apple (AAPL.O), Alphabet (GOOGL.O), and Microsoft (MSFT.O) were all trading near one-year lows.
The group has contributed significantly to the more than $5 trillion in value decline of the S&P 500 index over the last two trading sessions.
According to Wedbush analyst Ives, because the majority of iPhones are made in China, Apple, a U.S. tech business, is most vulnerable to American tariffs on Chinese goods.
As the electric carmaker struggles with a developing brand issue brought on by CEO Elon Musk’s backing of President Trump and far-right parties in Europe, he said the trade war would further compound Tesla’s problems.
At a time when some tech companies are under fire for their big AI expenditures, the warning highlights rising concerns that tariffs could reduce margins and cause supply chain disruptions.
