SMCI ‘Worst-Case Scenario’ for Tech Wipes $1.4 Trillion from Nasdaq
There’s virtually nowhere to hide for many US technology companies under President Donald Trump’s new tariff regime, the harshest in a century.
After Thursday’s slump wiped $1.4 trillion in market capitalisation from the Nasdaq 100 Stock Index, the gauge is down 16% in the past six weeks. The Magnificent Seven even more, at 20%. Chipmakers are in free fall. And there’s little sign the pain will end anytime soon.
China and Taiwan, the global hubs for chip and high-tech manufacturing, got hit with levies of 54% and 32%, respectively. Nascent production bases like Vietnam and India are staring at taxes of at least 26%.
That’s a disastrous setup for companies like Apple Inc., Nvidia Corp. and Broadcom Corp., US technology stalwarts that source hardware components and assembly labor from southeast Asia — and use it to make their intellectual property worth trillions. For years, they’ve woven intricate supply chains that have delivered billions in profits and soaring share prices. It’s a system that can’t be unwound quickly, which means these companies are faced with a difficult choice: hike prices at a time when consumers are stretched thin or absorb costs and watch profits dwindle.
SMCI US Stock Futures Sink as China Retaliates Against Trump Tariffs
US stock futures tumbled further in early trading on Friday after China retaliated against new US tariffs with levies on all American imports.
Stock futures tied to the S&P 500 Index were down as much as 2.7% as of 6:40 a.m. in New York, while those linked to the Nasdaq 100 Index slumped as much as 3.1%. The drop comes as China retaliated against US tariffs with its levies of its own, imposing a 34% tariff on all American imports starting April 10, according to the official Xinhua News Agency.
Friday’s losses follow a massive wipe out by US stocks on Thursday that erased $2.5 trillion in value in the wake of President Donald Trump’s drastic new trade tariffs which ignited widespread recession fears.
NVDA As the price was at $117, we’re likely in the 4th phase of a long-term bearish trend. Until it hits $30, we won’t even think about going long again. It’s all about short-term trading to ride the volatility.