Technology stocks plummeted Thursday for their worst session since the Covid pandemic after President Donald Trump's new tariff policies sparked widespread market panic.
Apple led the declines among the so-called "Magnificent Seven" group, dropping more than 9% for its worst drop since 2020. The iPhone maker makes its devices in China and other Asian countries. Suppliers such as Qorvo and Skyworks Solutions plunged about 16% and 12%, respectively.
The tech-heavy Nasdaq Composite shed about 6% for its worst session in more than five years. The index is down more than 14% year to date.
Other megacaps also felt the pressure. Meta Platforms and Amazon fell about 9% each, while Nvidia dropped nearly 8%. Nvidia builds its new chips in Taiwan and relies on Mexico for assembling its artificial intelligence systems. Tesla slumped more than 5%, while Microsoft and Alphabet both fell about 2% and 4%, respectively.
Semiconductor stocks also felt the pain, with Marvell Technology, Broadcom and Lam Research falling at least 10% each. Micron Technology sank more than 16%, while Advanced Micro Devices declined more about 9%. Personal computer makers Dell and HP tanked 19% and about 15%, respectively. Dell registered its worst session in since 2018.
The drop in technology stocks came amid a broader market selloff spurred by fears of a global trade war after Trump unveiled a blanket 10% tariff on all imported goods and a range of higher duties targeting specific countries after the bell Wednesday. He said the new tariffs would be a "declaration of economic independence" for the U.S.
Companies and countries worldwide have already begun responding to the wide-sweeping policy, which included a 34% tariff on China stacked on a previous 20% tax, a 46% duty on Vietnam and a 20% levy on imports from the European Union.
China's Ministry of Commerce urged the U.S. to "immediately cancel" the unilateral tariff measures and said it would take "resolute counter-measures."
The tariffs come on the heels of a rough quarter for the tech-heavy Nasdaq and the worst period for the index since 2022. Stocks across the board have come under pressure over concerns of a weakening U.S. economy.
Trump applauded some megacap technology companies for investing money into the U.S. during his speech, calling attention to Apple's plan to spend $500 billion over the next four years.
