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Trump Tariffs Drive US Tech Shares to Brink of Bear Market
Trump Tariffs Drive US Tech Shares to Brink of Bear Market
By Jeran Wittenstein and Ryan Vlastelica
April 4, 2025 at 2:35 PM UTC
The Nasdaq 100 plunged another 4%, putting it on course to close more than 20% below its February record in a rout whose swiftness is rivaled in recent years only by the pandemic meltdown in 2020.
The looming bear market has wiped out nearly $6 trillion from the tech-heavy benchmark since its peak, spurred by worries President Donald Trump’s tariffs will push the US economy into recession. The market value destruction has been biggest in the likes of Apple Inc. and Nvidia Corp., companies whose worth swelled past $3 trillion on optimism about artificial intelligence. At this rate, there will be no $3 trillion companies.
Over the six-week slide, chipmakers Broadcom Inc. and Micron Technology Inc. sank at least 33%, while popular AI plays like Marvell Technology Inc. and Constellation Energy plunged at least 45%. Bloomberg’s Magnificent 7 index is off 24%, while LuluLemon Athletica Inc. and AirBnB Inc. have tumbled at least 30%.
For all the selling, though, the Nasdaq 100 has still delivered annual gains of 20% for the past five years through Thursday, an advance that prompted warnings that a bubble was inflating. Even with the 20% pullback, the index’s components remain expensive relative to history, with a price-to-earnings ratio still above the average over the past two decades. For bulls, that’s a worrisome sign if a recession is in the offing.
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Archive no pay wall link:
https://archive.ph/eUTeu
Original subscription link:
https://www.bloomberg.com/news/articles/2025-04-04/trump-tariffs-drive-us-tech-shares-to-brink-of-bear-market
By Jeran Wittenstein and Ryan Vlastelica
April 4, 2025 at 2:35 PM UTC
The Nasdaq 100 plunged another 4%, putting it on course to close more than 20% below its February record in a rout whose swiftness is rivaled in recent years only by the pandemic meltdown in 2020.
The looming bear market has wiped out nearly $6 trillion from the tech-heavy benchmark since its peak, spurred by worries President Donald Trump’s tariffs will push the US economy into recession. The market value destruction has been biggest in the likes of Apple Inc. and Nvidia Corp., companies whose worth swelled past $3 trillion on optimism about artificial intelligence. At this rate, there will be no $3 trillion companies.
Over the six-week slide, chipmakers Broadcom Inc. and Micron Technology Inc. sank at least 33%, while popular AI plays like Marvell Technology Inc. and Constellation Energy plunged at least 45%. Bloomberg’s Magnificent 7 index is off 24%, while LuluLemon Athletica Inc. and AirBnB Inc. have tumbled at least 30%.
For all the selling, though, the Nasdaq 100 has still delivered annual gains of 20% for the past five years through Thursday, an advance that prompted warnings that a bubble was inflating. Even with the 20% pullback, the index’s components remain expensive relative to history, with a price-to-earnings ratio still above the average over the past two decades. For bulls, that’s a worrisome sign if a recession is in the offing.
Snip...more...
Archive no pay wall link:
https://archive.ph/eUTeu
Original subscription link:
https://www.bloomberg.com/news/articles/2025-04-04/trump-tariffs-drive-us-tech-shares-to-brink-of-bear-market
❤️pants
RESIST!!
2 replies
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