Sparked by widespread concerns of a worsening trade war with China, the five biggest U.S. tech companies, including Apple, Amazon, Alphabet, Microsoft, and Facebook, lost a combined $162 billion USD in shareholder value on Monday, that also marked that worst day of 2019 for the broader market (via CNBC).
Last week, President Donald Trump tweeted that he would impose an additional 10% tariff on $300 billion of Chinese imports, suggesting an inability for the two countries to come to terms on a trade deal.
As China allowed its currency, the yuan, to devalue to its lowest level against the dollar in over a decade earlier this week, the U.S. stock market continued to plunge to bring the two-day drop, including Friday and Monday, to a whopping $228 billion USD:
Apple told U.S. Trade Representative Robert Lighthizer in June that the latest proposed tariffs would hit “all of Apple’s major products.” Some analysts are projecting a significant impact.
“Assuming smartphones, tablets, smart watches, and computer systems are not categorically excluded from the final $300B tranche, we expect there will be material impact to Apple hardware product earnings,” wrote analysts from Cowen, in a note to clients.
Among the five tech giants, Apple had the biggest percentage decline, falling 5.2%.