Technology stocks crashed hard Thursday. The selloff came fast after former President Donald Trump announced sweeping tariffs. The tech sector was hit the hardest.
Apple took the biggest blow. Its shares fell nearly 9%. That marks Apple’s sharpest drop since 2020. Most of its products are made in China and other parts of Asia. Because of that, investors saw it as a major target.
The company’s supply chain has become a weak spot. As Trump’s tariffs hit foreign manufacturing, Apple’s future earnings are suddenly in question.
Mega Tech Names Under Pressure
Other giants followed Apple’s plunge. Meta and Amazon both sank more than 7%. Meanwhile, Nvidia and Tesla fell over 5%. All of them rely on foreign labor or materials. That made them instant losers in this new tariff war.
Nvidia has factories in Taiwan and builds artificial intelligence systems in Mexico. These locations now fall under Trump’s sweeping import tax.
Even Microsoft and Alphabet weren’t safe. They each lost around 2%, though their operations are more U.S.-focused.
Semiconductor Stocks Crushed
Chipmakers were crushed across the board. Marvell Technology, Arm Holdings, and Micron Technology all dropped more than 8%. Broadcom and Lam Research lost 6% each. AMD fell over 4%.
Investors see semiconductors as highly vulnerable. They depend on complex, international supply lines. With new tariffs disrupting imports, costs could skyrocket.
Because of that, Wall Street dumped semiconductor shares quickly.
Software Stocks Can’t Escape The Panic
Software companies weren’t spared either. ServiceNow and Fortinet each fell more than 5%. These firms may not rely as heavily on foreign goods, but investor fear spilled into every tech sector.
It didn’t matter if the risk was real or not. Panic selling took over.
Trump Declares Economic War
The panic came after Trump made a stunning announcement Wednesday night. He revealed a flat 10% tariff on all imports. On top of that, he targeted specific nations with even higher duties.
China faces a total of 54% in tariffs—34% added to a previous 20%. Vietnam was slapped with 46%. The European Union saw a 20% hike.
Trump framed it as a “declaration of economic independence.” But markets heard something else: trade war.
As a result, the Nasdaq Composite plunged nearly 5% on Thursday. That brings its total loss for 2025 to 13%.
Global Response Adds Fuel To Fire
China responded quickly. Its Ministry of Commerce demanded the U.S. cancel the tariffs. Officials promised “resolute counter-measures.”
Meanwhile, EU leaders hinted at their own response. Diplomats called the U.S. move reckless and damaging.
Countries like Vietnam and India, both growing tech exporters, also voiced concern.
Clearly, the fight won’t stay one-sided for long.
Tariffs Hit Nasdaq During Weak Quarter
The timing couldn’t have been worse. The Nasdaq was already in decline. It just finished its worst quarter since 2022.
Investors had been pulling back from risky stocks. Now, Trump’s tariffs give them even more reason to run.
Even with interest rates on pause, fears of stagflation are rising. Prices are going up while growth slows. That combo scares the tech sector more than most.
Trump Praises U.S. Investments
In his speech, Trump tried to cushion the blow. He praised megacap tech firms that invest in the U.S. Most notably, he pointed to Apple’s plan to spend $500 billion domestically over the next four years.
But Wall Street didn’t bite. The praise wasn’t enough to stop the bleeding.
Investors focused on the threat. And the numbers were too big to ignore.
Tech Stock Meltdown Could Continue
So what’s next? Analysts warn the selloff might not be over. With tariffs already biting and more retaliation likely, tech stocks remain vulnerable.
Companies now face rising costs, possible shortages, and reduced demand. Consumers could get hit too, especially with higher prices for devices.
If the tariff war drags on, layoffs in the tech sector might follow.
Investors Brace For More Pain
The tech stock meltdown isn’t just a market dip. It could mark the start of a deeper correction.
With global tensions rising, investors are watching closely. If more tariffs or retaliation comes, panic may return just as fast.
For now, tech stocks remain on the edge. One wrong move—and the whole sector could tumble even further.
