Magnificent 7 relinquishes more than $1 trillion as tech drives stock market nosedive

The Magnificent Seven stocks collectively lost more than $1 trillion in Thursday trading, a stunning milestone that underscores how President Donald Trump's tariff rollout crippled financial markets.

Taken together, the seven megacap technology stocks that comprise the closely followed index lost around $1.03 trillion in market cap, according to a CNBC analysis of Thursday's session. As a whole, CNBC's Magnificent Seven index tumbled more than 6% in the trading day.

Technology stocks led a broad and severe market sell-off as the unveiling of Trump's long-awaited tariff policy created a risk-off atmosphere. The tech-heavy Nasdaq Composite tumbled about 6%, recording its worst session since 2020.

Trump's plan includes levies of 46% on Vietnam and 32% on Taiwan, two of several countries now facing special duties on exports to the U.S.

Magnificent 7 market caps

Apple led the megacap cohort's charge downward, sliding more than 9% amid concerns that Trump's broad plan for levies would hurt the personal technology giant given its production abroad. Apple notched its worst day in more than half a decade.

Amazon dropped around 9%, marking its biggest one-day decline since 2022. That comes after Trump also signed an executive order ending the de minimis trade loophole, which has allowed shipments worth less than $800 into the U.S. duty-free. The change is effective May 2.

Nvidia, the artificial intelligence giant and retail investor favorite, sank more than 7%. Trump has previously floated tariffs on semiconductors and other industries.

Also on the AI front, Microsoft pulled back more than 2% after Bloomberg News reported that the company was rolling back data center projects worldwide.

CNBC's Magnificent 7 index, 1-day

Dan Ives, a well-known technology analyst at Wedbush, called Trump's tariff plan "worse than the worst case scenario" in a note to clients. He said to expect countries to quickly be able to make deals to reduce their respective taxes, but warned that the U.S. would face a "self-inflected economic Armageddon" if the tariffs stay as originally presented.

But White House officials have largely brushed off concerns that Trump's economic policies were roiling the stock market. Treasury Secretary Scott Bessent said Wednesday that large market declines seen recently should be attributed instead to poor performance from technology companies following the launch of an AI model by Chinese startup DeepSeek in January that took Wall Street and Silicon Valley by storm.

"I'm trying to be secretary of Treasury, not a market commentator," Bessent said on Bloomberg TV Wednesday night. "What I would point out is that especially the Nasdaq peaked on DeepSeek day, so that's a Mag 7 problem, not a MAGA problem."

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