The US stock market fell sharply this week following tariffs on the day the US president released. Certainly, the tech sector seemed to be some of the toughest hits, as MegaCap stocks were on the brunt of the sale. As a collective, the grand 7 lost an astonishing $1 trillion in market capitalization. On the worst day on the market since 2022, Apple fell by more than 4%. Furthermore, both Microsoft and Alphabet fell by more than 1%. However, all three continue to decline, with Apple leading the way, cutting another 3.7%.
Last week, Apple (AAPL) exceeded 13%. Trump’s tariffs place a big hammer on iPhone makers as the company relies heavily on its business in Asia. Apple has been unharmed by Trump’s 2018 tariff plans, but this time the iPhone maker hasn’t been that lucky. The decline could last until the weekend as the spectacular seven shares have declined due to the count. However, some experts still have hope and are not worried about customs duties.
Daniel Ives of Wedbush recently wrote about the radical future of Apple (AAPL) stocks (AAPL) stocks, saying it might be too early for panic. He points out that there is concern about an immediate decline in the stock market, but Ives suggests that strong sales from Apple will prevent the company’s stock from falling too much. “It’s a very nervous announcement for Apple given Apple’s exposure,” Ives said in a note to investors. Luckily, he believes that the iPhone and other Apple products will ultimately win the exemption. “Investors will sell stocks and ask questions later, but I saw it unfold in Trump 1.0.”
Angelo Zino, a technology analyst at CFRA, also calls Apple (AAPL) stocks a shopping trip. “Even without the exemption, things may not be that bad,” says Zino. “In the past six years, Apple has expanded its gross profit from around 38% to 47%.
There are always investment experts who suggest buying dip at top stock at lower trading. AAPL has solid price forecasts over the next 12 months, but tariffs are definitely putting a wrench on those forecasts. Therefore, investors need to pay attention in the long term before supporting Apple and other epic stocks this year. However, due to current economic uncertainty in America, things can always be improved as the timetable is unknown.
