<div id="readability-page-1"><div>On Thursday, the technology sector witnessed a major drop, with the Nasdaq closing 6% lower. This marked the most severe single-day decline for tech stocks in over five years.What Happened: The sharp fall triggered widespread apprehension regardingthe future of the techsector.Dan Ives, the Global Head of Technology Research atWedbush Securities, spoke to CNBC and linked the market’s downfall to the proposed tariffs and their potential effects onglobal supply chains and consumercosts.The tech sector, traditionally a favorite among investors, found itself in a vulnerable position due to fears of economic disruption. Ives characterized the situation as “essentially an economic Armageddon” if the current tariff proposals, which could impose a 54% duty on Chinese imports, are not revised.Companies with significant exposure toChina, such asNvidia CorporationNVDA,Apple Inc.AAPL,and various semiconductor firms, borethe brunt of the sell-off.The Magnificent Seven stocks saw a collective market cap loss of over $1 trillion on Thursday.Ives underscored the unprecedented uncertainty that has gripped the market, stating, “This is as nervous as I’veseen investors since Covid March2020.”In the run-up to upcoming earnings calls, Ives identified three key factors for investors to watch: Firstly, the future of the tariffs is uncertain. Economic Advisor Peter Navarro hinted at possible negotiations, but if the tariffs remain, Ives warned they could reduce demand by 15–20% due to rising costs. Second, the lack of clear guidance from companies due to the ‘head-scratching nature of the tariffs’ could exacerbate market jitters. Finally, Ives pointed to specific areas of focus: the AI revolution, data center buildouts, and consumer-facing products like the iPhone.See Also: Bitcoin, Ethereum, XRP, Dogecoin Dump On Tariff News – BenzingaWhy It Matters: Dan Ives is usually bullish on the potential for technology, however, he has turned cautious as the proposed tariffs, aimed at bolstering domestic manufacturing, could instead disrupt supply chains that have been fine-tuned over decades. Ives highlighted the gap between policy statements and real-world challenges, warning that moving production entirely to the U.S. could significantly raise costs for tech giants like Apple.&#34;Talking in front of a microphone in the 202 area code is a lot different than the reality of moving the supply chain.&#34;Despite the current market upheaval, Ives maintains a cautious optimism for the long term, advising investors to look beyond the immediate chaos and consider potential buys if tariff fears ease. &#34;You have to look on the other side, assuming some sort of normalized earnings into 2025 and even 2026,&#34; he advised, naming Microsoft MSFT and Apple as potential buys if tariff fears subside.Vanguard Information Technology Index Fund ETF VGT dropped 7.24%, while the Technology Select Sector SPDR Fund XLK fell 6.82% on Thursday. <ul><li>Read Next: XRP Emerges As Retail Favorite, Outpacing Bitcoin’s Institutional Rally: Analyst Unpacks Their Distinct Journeys – Benzinga</li></ul>Image via ShutterstockDisclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.</div></div>

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On Thursday, the tech sector faced a significant downturn, with the Nasdaq dropping 6%, marking its worst single-day decline in over five years. Analyst Dan Ives warned of an 'economic Armageddon' for tech if proposed tariffs on Chinese imports remain, potentially reducing demand by 15-20%. The Magnificent Seven stocks lost over $1 trillion in market cap. Despite the turmoil, Ives suggests cautious optimism for long-term investments, particularly in companies like Microsoft and Apple, if tariff concerns ease.

- The technology sector experienced a significant decline on Thursday, with the Nasdaq dropping 6%, the worst single-day fall in over five years.  
- Dan Ives from Wedbush Securities attributed this downturn to proposed tariffs that could severely impact global supply chains and consumer costs, particularly affecting companies like Nvidia and Apple.  
- Despite the current turmoil, Ives suggests that investors should remain cautiously optimistic, looking for potential buying opportunities if tariff concerns diminish.

Benzinga

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As Nvidia, Apple And Other Mag 7 Stocks Wipe Out Over $1 Trillion In Investor Wealth On Thursday, Top Analyst Warns Of 'Economic Armageddon' For Tech Sector If Current Tariffs Remain