Apple, Tesla, and Nvidia Lead Wall Street declines

Trading on Monday kicked off with intense volatility on Wall Street, driven by the fallout from President Donald Trump’s sweeping global tariff plan. The S&P 500 opened in bear market territory, down over 20% from its February peak, while futures for the index tumbled 4.3% on Sunday night. Following two days of heavy sell-offs that erased more than $5.4 trillion in market value, stocks briefly turned positive early in the session before resuming their decline. Tech giants like Apple, Tesla, and Nvidia are among the hardest hit, dragging major indexes lower amid a cloud of economic uncertainty.

Trump’s “reciprocal” tariff policy, featuring a baseline 10% rate on imports from all countries (except Canada and Mexico) starting April 5, alongside additional tariffs tied to trade deficits effective April 9, has sparked immediate market reactions. The Dow Jones Industrial Average, tracking the 30 largest U.S. companies, shed 1,445.68 points by 10:39 a.m. (Brasilia time), a 3.77% drop. The tech-heavy Nasdaq fell 4.35%, or 678.28 points, cementing a bear market that began Friday.

Investors are on edge over the potential ripple effects of these measures on the global economy. Analysts from JPMorgan have raised the odds of a U.S. recession to 60%, adding pressure to the trading floor. The technology sector, a key driver of the S&P 500, posted a 6.86% loss in the last session, while energy stocks led the downturn with a 7.51% drop.

Trump tariffs shake the market

At the heart of the storm is Trump’s tariff blueprint, unveiled last week. The plan, imposing an average weighted tariff of 18.3% on imports, caught markets off guard. Though roughly a third of imports are exempt, the effective 12.6-percentage-point hike in tariffs still delivers a hefty blow to global trade. China has already retaliated with 34% duties on American goods, pushing combined rates to 54% in some cases and stoking fears of an extended trade war.

The turbulence extends beyond the U.S. In Europe, futures for Germany’s DAX index slid 5.3%, while France’s CAC 40 dropped 4.32%. In Asia, Japan’s Nikkei 225 fell 4.13%. Oil prices mirror the strain, with Brent crude plunging from $82.63 in January to $63.01 in early April, signaling worries over global demand amid a potential recession.

Tech giants in the eye of the storm

Megacap tech firms, often dubbed the “Magnificent Seven,” are taking a beating. Apple, down 2.77% in after-hours trading, saw its shares crater 7.29% on Friday. Tesla, another heavyweight, shed 5.8% on Monday after a 10.42% plunge in the prior session, marking a decline of over 50% from its all-time high. Nvidia, a linchpin in the semiconductor space, dropped 5.5% today following a 7.36% loss Friday, with a weekly decline of 14%.

Amazon posted a 2.32% dip in after-hours trading, compounding a 4% drop Friday after forecasting revenue growth of just 5% to 9% for Q1—the slowest in its history. Alphabet, Google’s parent, slipped 3.19% last week as earnings fell short of expectations. These companies, which fueled the S&P 500’s 26.7% rally in 2024, are now spearheading the correction.

Sectors hit hardest by tariffs

The tariff fallout stretches beyond tech. Energy stocks, down 7.51% Friday, are reeling from anticipated declines in fuel demand, with WTI crude falling over 3% to below $60 per barrel—the lowest since April 2021. Airlines like American, Southwest, United, and Delta saw losses between 4% and 5%, reflecting weaker revenue and demand outlooks for the year.

In finance, JPMorgan Chase, which fell 5.01% in the last session, mirrors investor caution. Despite a robust 41% gain in 2024, the bank faces headwinds in an uncertain macroeconomic environment. MicroStrategy, tied to Bitcoin, slumped 10.7% today as the cryptocurrency dipped to $77,220.

• Apple: down 2.77% after-hours, following a 7.29% drop Friday.
• Tesla: shed 5.8% Monday, with a 9.2% weekly loss.
• Nvidia: lost 5.5% today, down 14% for the week.
• JPMorgan: financials fell 5.01%, bank under pressure.
• MicroStrategy: dropped 10.7%, tracking Bitcoin’s decline.

Global markets feel the ripple effect

International responses to Trump’s tariffs are amplifying the crisis. China, a major U.S. trade partner, slapped 34% retaliatory duties, hitting sectors like tech and energy. Asian oil demand is showing cracks, with Q1 imports slipping from 27.08 million barrels per day in 2024 to 26.44 million in 2025. In Europe, falling futures underscore fears that a trade war could hobble exports and growth.

Gold, meanwhile, climbed 0.38% to $3,047 per ounce as investors flocked to safe havens. Iron ore on China’s Dalian Exchange fell 3.36% to $104.31 per metric ton, highlighting pressure on commodities.

How tariffs squeeze corporate profits

Higher tariffs are set to raise production costs for firms reliant on global supply chains. Apple, which assembles much of its products in China, may see slimmer margins or pass costs to consumers, denting its edge. Tesla, with plants in China and the U.S., faces similar risks, with Wedbush analysts slashing its stock price target from $550 to $315.

Pharma firms like Eli Lilly, down 5.2%, and Novo Nordisk, off 1.8%, are grappling with Trump administration curbs on Medicare and Medicaid coverage for anti-obesity drugs. Dell, which led S&P 500 losses Friday with an 18.99% plunge, reflects the struggles of tech firms dependent on imported components.

A history of volatility and what lies ahead

Wall Street has seen turbulence before. In 2024, the S&P 500 soared 26.7%, its 15th-best annual gain since 1928, propelled by AI hype and economic resilience. Paired with a 24.2% rise in 2023, the 2023-2024 stretch delivered a 57.4% two-year gain—the sixth-best since 1928. Yet today’s correction, fueled by tariffs, echoes the March 2020 crash, when the index shed 9.08% in a week amid the pandemic.

Analysts warn that trade policy uncertainty could prolong volatility. The 10% baseline tariff seems locked in, but additional rates might shift after talks with trade partners. The Federal Reserve, holding off on rate decisions amid the chaos, faces a tough choice: cut rates to boost the economy or hold steady to curb tariff-driven inflation.

Retail and consumer spending under strain

The consumer discretionary sector, home to firms like Amazon and Best Buy, is buckling. Best Buy cratered 17.84% Friday as electronics demand falters amid rising costs. Nike, reliant on Asian manufacturing, plunged nearly 20% in a single day earlier this year—its worst ever—after slashing 2025 revenue forecasts.

A slowing economy worries retailers. U.S. consumers, unlikely to ditch Amazon’s convenience, may still cut discretionary spending if prices climb. UnitedHealth, in healthcare, dropped 13.90% in February, though some analysts see the decline as overblown given its fundamentals.

Tariff timeline and next steps

Trump’s tariffs follow a set schedule. The 10% baseline kicks in April 5, with additional rates starting April 9. Markets await responses from trade partners and potential talks to soften the blow.

• April 5: 10% baseline tariff begins on imports, excluding Canada and Mexico.
• April 9: additional tariffs tied to bilateral trade deficits take effect.
• Coming weeks: clarity expected on retaliations and policy tweaks.

Other sectors under pressure

Beyond tech and energy, industrials fell 5.41% Friday, with firms like Caterpillar hit by weaker demand for heavy equipment. Freeport, a copper producer, may gain from tariff incentives but still logs losses in a shaky market. General Motors, up 3.8% in 2023 after a Tesla deal, now faces trade policy uncertainties, while MicroStrategy tracks crypto volatility.

The economic landscape remains fluid. The 10-year Treasury yield rose to 4.024%, signaling a flight to safety, while the VIX “fear index” hit 38, its highest in months. Tariffs, retaliations, and macroeconomic unknowns keep investors on high alert.