Tech Giants Lose $770 Billion Amid Nasdaq's Sharp Decline
New York, Saturday, 11 October 2025.
Major tech companies like Nvidia, Amazon, and Tesla lost significant market value as Nasdaq fell 3.6%, driven by renewed U.S.-China trade tensions following tariff threats by President Trump.
Market Reaction to Tariff Threats
The recent decline in the Nasdaq Composite Index, which fell by 3.6% on October 10, 2025, is attributed to escalating trade tensions between the United States and China. President Trump’s announcement of a 100% tariff on Chinese imports, effective November 1, 2025, has particularly unsettled investors in the technology sector. This announcement followed China’s decision to impose export controls on rare earth minerals, crucial components for tech and defense industries, exacerbating concerns over a trade war [1][3][5].
Impact on Major Tech Stocks
Major tech giants, including Nvidia, Amazon, and Tesla, saw their market capitalizations fall significantly. Nvidia’s stock alone dropped nearly 5%, resulting in a $229 billion loss in market value on October 10, 2025. Amazon and Tesla also experienced substantial losses, with Amazon’s market cap decreasing by $121 billion during the same period [1][4][5]. This wave of selling reflects broader investor anxiety about the impact of tariffs on the profitability and global competitiveness of these companies.
Economic Implications
The ripple effects of these stock declines are felt across the broader economy. Tech companies form a substantial part of the S&P 500, and their downturn directly impacts overall market indices. The Dow Jones Industrial Average also fell by 878.82 points, a decline of 1.9%, while the S&P 500 decreased by 2.71% on October 10, 2025 [2][4][5]. As investors shift away from tech stocks, there is a ‘flight to safety,’ with increased interest in consumer staples and rare earth stocks [3][5].
Future Outlook and Investor Sentiment
Looking ahead, analysts caution that continued trade tensions could further depress tech stock valuations. The upcoming earnings reports from major tech companies, including Nvidia and Microsoft, will be closely watched for guidance on future performance amid these challenges [1][5]. Additionally, the ongoing U.S. government shutdown adds another layer of uncertainty, delaying key economic reports and affecting investor sentiment [3][5].