On Monday, the “Magnificent Seven” stocks – which is headed by Apple – plummeted, deepening a market sell-off that has erased roughly $2 trillion from their collective value, amid some investors’ concerns over the economic repercussions of U.S. President Donald Trump’s use of tariffs to level the playing field in worldwide trade.
Apple’s 52-week low stands at $164.08, set on April 19, 2024. Shares closed today at $181.46.
Reuters:
The cuts came as Trump doubled down on tariffs on Sunday, telling investors to endure the consequences and ruling out trade talks with China for now.
Tesla shares slumped 7% to $223, leading losses among the “Magnificent Seven” – a group of high-performing tech stocks that powered Wall Street’s rally for years but whose fortunes have taken a turn for the worse in the last few months.
The companies have collectively shed more than $6 trillion in market value since their peak in late 2024.
Apple, Alphabet, and Microsoft were trading around one-year lows, with the iPhone maker falling 4.8%, while other “Mag 7” members fell between 1.5% and 4.8%.
MacDailyNews Take: This too shall pass. Patience, padawans.
I will tell you the secret to getting rich on Wall Street. You try to be greedy when others are fearful. And you try to be fearful when others are greedy. ― Warren Buffett
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Hmmm, you/MDN may be more hopeful than me. There’s a lot more going on than tariff tumult, especially if credit is given to those that have noted the Mag 7–effectively the S&P–has become the “safe money” Treasury replacement…with China being one of the biggest owners.
I’ve heard many postulate that, because of debt, a draw-down was going to happen in bonds or stocks. With China being the greatest foreign benefactor (laundering dollars in a safe US asset) the Mag 7 became the release valve. Bonds would have been a killer to the dollar and the banking system. Mag 7’s being the culprit pinches China and “the fortunate” in the US. (Treasure Sec Bessent has said so much.) China has elsewhere been told, “you aren’t welcome here…land ownership/purchases for instance.
As well, Treasury Sec Bessent has spoken of a reset…likened to Bretton Woods (or like coming off the gold standard in ’71–my ref). Our debt needs to be reset because US couldn’t embrace austerity, inflation would “kill” at needed levels, so a reset is the option. Maybe what’s happening before our eyes? Imo = yes.
In no way do I believe Trump’s tariff plan(s) have been put into motion w/o thinking of the reset. China is the threat and the tariffs require/allow for allies to form in opposition. Vietnam, Japan, Korea and Australia are all onboard with tariff mods. Malaysia seems to lean a bit into China. Indonesia = too early to call. All are in the China-lane. Connecting with Russia, or at least seeing a weaker China/Russia connections is imperative. The Ukr peace deal desired/ongoing. Peace deal also betters US/Russia relationship. At this point; NO TARIFFS levied upon Russia!
Greenland wasn’t just empty ego-talk, nor was re-acquiring the Panama Canal. Not until hearing a p-cast last week, did I ever see Canada as the white-collar thug managing China’s money for sht coming into the US…and known and supported by their past leader and more so by the possible incoming. Mexico is the blue-collar thug to the south (no racist delineation here) handling the physical part of the China-malfeasance. These smoke signals preceded the tariff implementation and, though the tariff pain and risk is palpable, it’s part of a bigger story, imo. China demarcations.
To no surprise, if things get hotter, (50% increase tariffs coming 4/9–if China doesn’t concede), AAPL’s production is about as uncertain as could be and I’m sure Tim wishes he distributed manufacturing a lot faster and I wish I would have sold a chunk when in the 240’s/share.
We are clearly in and have been in “The 4th Turning” (deeply researched and curiously accurate book)…for a number of yrs and it often results in a hot war. Is war inevitable? I hope & not planning for it, but it’s safe to say; this is WAY MORE than tariffs and didn’t start with tariffs.
Apple is about 80% production in China, 20 in India. It’s not unrealistic to get that to 30/70 or maybe even 35/65.
30% plus apple is known to have packed inventory levels in the US in advance of the tariffs, could let apple skate for over a quarter without real effect.
Maybe dipsh*t cook will realize it’s dumb to put all your production eggs into hostile communist baskets, and build at least SOME production capacity in the US. Even if only if with highly experimental robotics that can produce 5% of domestic capacity, that would be useful in spreading the the risk, rather than concentrating it in communist hellholes like china and Vietnam.
Europe is near collapse. Their number one import from US is oil/gas. If they tariff that the US will just sell it to India and China that will buy all the US can sell (not to mention refilling US reserves that Biden pissed away). To put that in perspective, that is 2 quarters of apple sales. It’s nothing, and if Europe tariffs it, im sure Russia will be happy to sell the EU all the oil and gas it needs. LOL.
I PRAY that trump holds the tariffs for 9 months to punish everyone. Yes it will hurt US a bit, but it will devastate the rest of the world.
The US learned that Canada and the UK and Europe are not real friends but are back stabbers. They deserve what’s coming.
Market leveled off today and upward pressure. Apple PE is around 29, that is in decent deal territory but not in “oh wow bargain territory”. A lot of froth got corrected.
America IS NEAR COLLAPSE… not the reste of the world.
America is just sliding towards an outsider status.
You want people to be punished? And you’re praying for it? You need to get on an antidepressant. I say this as an American citizen.
The world is a better place when we all cooperate. Wars destroy wealth.
it makes little sense why people are rushing to buy iPhone cheaper before tariffs set in, is Apple not sucking those extra costs, not pushing it on consumers, hence the 17% AAPL stock loss?