The tariff storm sweeps through the "seven giants" of the US stock market, with Apple's stock price nearing a one-year low

Reuters, April 7 - U.S. stocks of the "Seven Giants" fell on Monday as investors worried about the financial impact of President Trump's global tariff war, continuing the market's downward trend, with a total market value evaporating by about $2 trillion. Wall Street's most bullish tech analyst, Dan Ives, previously lowered the target prices for Apple and Tesla, warning of a "tariff economic disaster." Tesla (TSLA.O) shares plummeted by as much as 7% to $223, leading the decline among the "Seven Giants." The "Seven Giants" are a group of high-performing tech stocks that have driven Wall Street's gains for years, but their fortunes have taken a sharp downturn in recent months. Since peaking at the end of 2024, the market value of these companies has shrunk by more than $6 trillion. Apple (AAPL.O), Alphabet (GOOGL.O), and Microsoft (MSFT.O) traded near one-year lows, with Apple dropping as much as 4.8%, while other members of the "Seven Giants" saw declines ranging from 1.5% to 4.8%. Over the past two trading days, the market value of S&P 500 constituents has evaporated by more than $5 trillion, with the Seven Giants accounting for a significant portion. Chart: U.S. tariffs rob the "Seven Giants" of their luster Wedbush analyst Ives stated that as an American tech company, Apple is most affected by U.S. tariffs on Chinese goods, as most iPhones are assembled in China. He noted that the trade war will further deepen the challenges faced by Tesla, as the electric vehicle manufacturer struggles with an escalating brand crisis due to CEO Musk's support for Trump and far-right politics in Europe. As some tech companies face scrutiny over massive spending on artificial intelligence, this warning highlights growing concerns that tariffs could squeeze profit margins and disrupt supply chains. Ives lowered Tesla's target price from $550 (one of the highest on Wall Street) to $315. His new target price is still nearly $100 higher than the stock's latest trading price. Tesla closed down 2.56% at $233.29 on Monday. Ives lowered Apple's target price by $75 to $250, stating that tariffs represent "a complete disaster" for the tech giant, which may have to raise U.S. iPhone prices to protect its high profits. Apple closed down 3.67% at $181.46 on Monday. During Trump's first term, Apple received exemptions from U.S. tariffs on China, but analysts are uncertain whether Apple will receive exemptions this time, despite announcing plans to invest $500 billion in the U.S. over the next four years. The company has kept the starting price of the iPhone Pro at $1,000 for years. "We believe that producing iPhones in the U.S. at a price of $1,000 is not feasible," Ives stated in a report. "Prices will have to be significantly raised, which is hard to imagine." Regarding Tesla, Ives mentioned that trade tensions may prompt Chinese buyers to turn to domestic competitors. "The backlash of Trump's tariff policy in China and Musk's associations will be hard to underestimate, further driving Chinese consumers to purchase domestic cars like BYD." "He stated in another report he published