After Thursday’s slump wiped $1.4 trillion in market capitalization from the Nasdaq 100 Stock Index, the gauge is down 16% in the past six weeks. The Magnificent Seven even more, at 20%. In short, buying opportunities are now presenting themselves.
Jeran Wittenstein and Ryan Vlastelica for Bloomberg News:
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%. On Friday, China said it will impose a 34% tariff on all imports from the US starting April 10.
All of this represents 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.
Investors reacted swiftly, sending Apple shares tumbling 9.3% Thursday after Trump announced his plan. The drop was the biggest for the iPhone maker since March 2020, erasing more than $310 billion from the company’s market value. A Bloomberg index that tracks the so-called Magnificent Seven stocks sank 6.7%. On Friday, Apple fell an additional 3.8% while the Magnificent Seven index fell 3.4%.
Jason Britton, chief investment officer at Reflection Asset Management, was a buyer on Thursday even though he’s bracing for more volatility ahead.
“There are significant pockets of opportunity being created,” Britton said. “I’m deploying cash in the names I liked yesterday. If your investment horizon is longer than 12 months, for companies that were strong businesses yesterday, you should be buying them today.”
MacDailyNews Take: What a beautiful and rare AAPL discount sale!
It’s only painful to those who panic and sell, doing exactly the opposite of what smart investors, who’ve built a strong cash position precisely for moments like this, are doing. – MacDailyNews, April 4, 2025
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