The markets tremble because of Trump's rates. The 7 Magnifici Tech lost 1 trillion dollars in one day at scholarships

The New York Stock Exchange ended on Thursday the worst trading day, due to the extremely aggressive rates announced by President Donald Trump. Major stock exchange indices have turned to the highest daily losses from the beginning of the Covid-19 pandemic and until now.

Apple company, most affected by Trump's decisions: Profimedia

The Dow Jones Industrial Average index dropped by 3.7%(about 1,550 points), S&P 500 lost 4.5%, and Nasdaq, dominated by the technological sector, collapsed by 5.6%. Apple is the largest stain, according to Forbes.

This could be the highest dow loss for Dow in June 2020 and the steepest percentage decrease for S&P 500 and Nasdaq in March 2020, when the Covid-19 Pandemia triggered a bursier crah. Excluding 2020, S&P 500 is heading for the worst day of 2011.

The market became even more volatile after President Trump has reaffirmed that he would not go back to the rates, which scared investors who hoped for greater flexibility.

VIX index, also known as “The index of fear”increased by over 30%, reaching the highest level in August 2023 and recording one of the 10 largest daily increases in the last decade.

Apple, the most affected giant tech

Of the big technology companies nicknamed the “seven magnificent”, Apple was the worst hit, with a 10% decrease in his shares – the biggest daily loss of March 2020 and the seventh day of the last two decades. The reason? Apple manufactures most of the devices in China, which is now targeted by 54%rates.

If Apple will transfer costs to consumers, analysts estimate that an iPhone could become 30% -40% more expensive. An iPhone 16 Pro Max model, which now costs $ 1,599, could reach nearly $ 2,300.

And the other great technological companies have registered significant losses:

• Alphabet (Google) -4%
• Amazon -9%
• Meta (Facebook) -8%
• Microsoft -2%
• Nvidia -7%
• Tesla -6%

Also, the retail sector was severely affected, companies such as Best Buy, Targ and Dollar Tree losing over 10%, and sports brands such as Nike and Lululemon decreasing by over 10% due to their dependence on China and Vietnam production.

The financial sector was also strongly hit, with more than 10% decreases for American Express, Bank of America and RobinHood.

According to Factset data, these are the 10 most affected companies on S&P 500:

• Microchip Technology (-18%)
• Best Buy (-17%)
• Dell Technologies (-17%)
• Ralph Lauren (-16%)
• Williams-Sonoma (-16%)
• Deckers Outdoor (-16%)
• Zebra Technologies (-15%)
• Western Digital (-15%)
• Garmin (-15%)
• Water Corporation (-15%)

The market value of the largest technological companies decreased by $ 987 billion in one day, after at one point the total losses had exceeded $ 1 trillion.

Apple was responsible for most of these losses, with a decrease of $ 321 billion.

Affected companies in Europe

In Europe, companies specialized in microchips suffered: Infineon (-7.96% in Frankfurt) and Stemmicroelectronics (-8.17% in Paris).

The textile industry, whose clothing articles are partially manufactured in China, Vietnam and Cambodia (charged with 34%, 46%and 49%, respectively, in addition to the customs duties already imposed), was also affected. On Wall Street, around 18.50, Romania time, Gap lost 18.57%, Ralph Lauren 15.93%and Lululemon 11.03%.

Nike lost 9.97%, the equivalent of a $ 9 billion loss in stock market capitalization. In Europe, Adidas gave up 11.72%, Puma 11.16%and JD Sports 7.89%.