The collective market capitalization of the seven stocks dropped to $8.34 billion overnight, wiping off around $600 billion in wealth from the Magnificent 7 index. As investors fled their equity holdings due to US President Donald Trump’s broad-based tariffs, US-based technology equities experienced a steep sell-off in trading, losing over $600 billion in value.

The S&P 500 fell 4.9% and the Nasdaq 100 fell 5.5% on April 3, the largest decline since 2020, wiping away about $2.5 trillion from Wall Street overnight. Due to heightened concerns about an impending recession, especially as global supply chains prepare for its effects, the market decline is seen as one of the sharpest in recent memory.

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Among the most severely impacted were the “Magnificent 7” technology stocks, which were the new darlings of American investors. 37% of the S&P 500 is made up of the so-called “Magnificent 7” stocks: Apple, Microsoft, Google, Amazon, Nvidia, Tesla, and Meta.

Leading the losses were shares of iPhone manufacturer Apple, which fell more than 9% and lost $301 billion in market capitalization. Nvidia then lost $210 billion, or 7.8%, of its market capitalization. The market capitalizations of Amazon and Meta both dropped by more than $130 billion, or almost 9%. The overall market capitalization of the seven equities dropped from $8.94 trillion to $8.34 billion, wiping out around $600 billion in wealth over time.

The four causes of the crash are as follows:

• Because a significant amount of the companies’ supply chains came from abroad, investor concerns about them increased. 
• Their parts and raw materials will cost more to import into America due to high tariffs. Customers will either have to pay this additional expense or see a decline in their income.
• Additionally, practically every US tech company operates in international markets, with the EU serving as one of their primary marketplaces.
• Trump’s tariff increases do not apply to services, but Europe’s response to the US will target its services sector, particularly its banking and technological sectors. 

To Summarize
The US stock market plunged sharply after Trump imposed broad tariffs, sparking fears of a recession. Tech giants like Apple and Nvidia led the $600 billion sell-off in the “Magnificent 7.” The S&P 500 and Nasdaq saw their worst drop since 2020 as global supply chain and trade concerns intensified.