Apr 08, 2025 (Baystreet.ca via COMTEX) --
The unexpectedly high Trump tariff rates sent global stock markets lower. The Magnificent Seven are not immune. The firms collectively earn almost half of their earnings from overseas. Investors cannot flee to the S&P 500 (IVV), since companies on the index make over 40% of their earnings from non-U.S. markets.
In 2025, Tesla (TSLA) is the biggest loser. It not only erased the "Trump bump" rally between November 2024 but risks falling to multi-year lows. CEO Elon Musk said he wanted the European Union and the U.S. to form a free-trade zone. This comment breaks away from the President's hard line on tariff rates. As Musk and Trump diverge, Musk may spend less time at DOGE and focus his efforts on Tesla.
TSLA stock lost 42.23% YTD.
Nvidia (NVDA), the "must-have" chip supplier that powers artificial intelligence, lost 27% YTD. Its P/E is now 33.2 times, which the markets compressed compared to the start of this year. NVDA stock could form a trading range while its peer, Advanced Micro Devices (AMD) is on a downtrend. Sellers cut their position at over $110, leading to AMD stock closing at $83.64 on April 7.
Alphabet (GOOG), Microsoft (MSFT), Meta (META), Amazon (AMZN), and Apple (AAPL) also erased their gains. Investors will need to gauge the fear sentiment to guess if those stocks will rebound.
COMTEX_464341043/2559/2025-04-08T09:27:30
