Nasdaq 100: Tariffs Slam Tech Stocks—Apple, Microsoft, Tesla Lead Index Decline

Nasdaq Enters Bear Market as Tariffs Pressure Tech and Broader Market

Stocks plunged Friday as escalating tariffs between the U.S. and China triggered a broad sell-off, tipping the Nasdaq into bear market territory. The tech-heavy index closed down 4.9%, now more than 22% off its December high, reflecting mounting concerns that the trade standoff will dent global growth and crush earnings across sectors. The S&P 500 and Dow Jones dropped 4.8% and 4.1%, respectively, tracking their worst weekly performance since 2020.

Are Tech Giants Now Facing a Margin Crisis?

Big Tech led the downturn, driven by fears that China’s retaliatory 34% tariffs could slice into profits and disrupt supply chains. Apple, which depends on China for 90% of iPhone assembly, slumped 5% Friday and is down 12% for the week.

Microsoft and Alphabet lost 2.6% and 4.5%, respectively, while Meta tumbled 12.4% and Amazon 10.6%. Nvidia, a top AI play, sank 13.6% amid renewed caution over data center spending.

Tesla plunged 13.1%, grappling with slower sales and growing backlash over CEO Elon Musk’s political entanglements. The “Magnificent Seven” ETF, which includes these names, is now off 27.6% from its December peak.

Are Chipmakers and Hardware Suppliers the Next Risk Trade?

Semiconductor names with heavy China exposure also faced intense selling. Marvell Technology dropped 12%, Intel slid 10%, and Broadcom shed over 7%.

Server and PC makers bore additional pain: Dell Technologies sank 22.3%, HP fell 19.1%, and Super Micro Computer lost 14.4%. Hewlett Packard Enterprise was down 21.8%. Wedbush estimates a 15% hit to overall tech earnings if tariffs remain in place, likening the potential disruption to the early pandemic period.

Which Sectors Are Buckling Under Trade War Pressures?

Losses spread well beyond tech. The energy sector dropped 7.1% as oil prices plunged, dragging Shell down 8%. Industrials were hit hard, with Boeing falling 9% and GE Aerospace over 8%.

In financials, major banks including Goldman Sachs, Citigroup, and JPMorgan lost 7-8%, as recession fears climbed. Agriculture-linked names like Deere and Caterpillar declined over 5%, while materials, real estate, and consumer discretionary stocks also saw heavy selling.

What’s the Outlook as Tariff Tensions Deepen?

With both nations doubling down—China adding firms to its “unreliable entities list” and opening a DuPont antitrust probe—the prospect of a resolution appears remote.

Trump’s defiance in the face of market turmoil adds further uncertainty. Treasury yields fell below 4% as investors sought safety, and JPMorgan now sees a 60% recession risk.

Traders will look closely at next week’s inflation data and Fed commentary for signs of policy adjustments, but the path forward hinges squarely on trade developments. Until clarity emerges, volatility is likely to remain elevated across asset classes.

More Information in our Marvell Technology.