Magnificent 7 stocks slide as Trump tariff fears rattle markets again

Stocks fell after a report that the Trump administration could be more aggressive on tariffs

We may earn a commission from links on this page.
Nvidia logo on a building surrounded by branches
Nvidia headquarters on May 21, 2024 in Santa Clara, California.
Photo: Justin Sullivan (Getty Images)
In This Story

The market’s highest-performing tech stocks, the Magnificent 7, mostly slid on Monday amid worries over President Donald Trump’s tariffs.

Tesla (TSLA+3.99%) was down 4.8% at 11:30 a.m., while Nvidia (NVDA+0.83%) was off 4.1%, Amazon (AMZN+0.83%) was 3% lower, Meta (META+1.48%) fell 2.1% Microsoft (MSFT+1.61%) dropped 2.5%, and Alphabet (GOOGL+1.28%) was down by 1.1%. Apple (AAPL+0.06%) stock was the outlier among the Mag 7, rising 0.6%.

Advertisement

The Nasdaq Composite and S&P 500 indexes fell 1.5% and 0.5%, respectively, and the Dow Jones Industrial Average reversed earlier losses to rise about 88 points, or 0.2%.

Advertisement

The Trump administration is expected to announce new tariffs on Wednesday that could include his so-called reciprocal tariff plan. The White House is currently debating over implementing individualized tariffs on trading partners, or an across-the-board tariff impacting all U.S. trade, the Wall Street Journal (NWSA-0.61%) reported, citing unidentified people familiar with the matter.

Advertisement

The president reportedly wants more aggression on tariffs, and has asked his team for plans to impose higher rates of tariffs on more countries, according to the Wall Street Journal. One plan reportedly involves tariffs of up to 20% on mostly all of the country’s trading partners. Trump has also reportedly pushed for import taxes on goods from countries that the U.S. has a trade deficit with.

The Trump administration may also introduce industry-specific tariffs, including those that would impact critical minerals and related products, on Wednesday, but that’s not yet certain.

Advertisement

Meanwhile, Goldman Sachs (GS+0.14%) economists bumped their forecast of the odds of a recession over the next 12 months to 35% from 20%.

The increase “reflects our lower growth baseline, the sharp recent deterioration in household and business confidence, and statements from White House officials indicating greater willingness to tolerate near-term economic weakness in pursuit of their policies,” the economists wrote in a note.