Tariff storm ravages Magnificent Seven as Apple nears one-year low

The "Magnificent Seven" stocks sank on Monday, extending a market rout that has wiped off around $2 trillion from their combined value as investors worry about the financial fallout of US President Donald Trump's global tariff war.

The latest slide followed cuts in price target for Apple and Tesla shares from one of Wall Street's most bullish tech analysts, Dan Ives, who warned of a "tariff economic armageddon".

The cuts came as Trump doubled down on tariffs on Sunday, telling investors to endure the consequences and ruling out trade talks with China for now.

Tesla shares slumped 7 per cent to $223, leading losses among the "Magnificent Seven" - a group of high-performing tech stocks that powered Wall Street's rally for years but whose fortunes have taken a turn for the worse in the last few months.

The companies have collectively shed more than $6 trillion in market value since their peak in late 2024.

Apple, Alphabet and Microsoft were trading around one-year lows, with the iPhone maker falling 4.8 per cent, while other "Mag 7" members fell between 1.5 per cent and 4.8 per cent.

The group has accounted for a large chunk of the more than $5 trillion the S&P 500 index has lost in value over the past two trading sessions.

Wedbush analyst Ives said as a US tech company Apple has the biggest exposure to American tariffs on Chinese goods as most iPhones are assembled in China.

He said the trade war would also deepen Tesla's challenges as the electric automaker grapples with a growing brand crisis sparked by CEO Elon Musk's support of President Trump and far-right politics in Europe.

The warning underscores growing fears that tariffs could squeeze margins and disrupt supply chains at a time when several technology companies are facing scrutiny over their big AI spending.

Ives cut his target for Tesla shares to $315 from $550, which was one of the highest on Wall Street. His new target is still nearly $100 above the stock's latest trading price.

On Apple, Ives slashed his target by $75 to $250, calling the tariffs "a complete disaster" for the tech giant, which may have to raise U.S. iPhone prices to protect its lofty margins.

Apple had secured exemptions to US tariffs on China during Trump's first term, but analysts are unsure if it can secure waivers this time despite announcing $500 billion in US investments over the next four years.

The company has for years kept the starting price of its iPhone Pro model at $1,000. "The concept of making iPhones in the US is a non-starter in our view at $1,000," Ives said in a note. "Price points would move up so dramatically it's hard to comprehend."

On Tesla, which could be headed for another year of sales declines after a dismal first-quarter deliveries report, Ives said the trade tensions could push buyers in China to domestic rivals.

"The backlash from Trump tariff policies in China and Musk's association will be hard to understate and this will further drive Chinese consumers to buy domestic such as BYD," he said in a note published separately.