Nasdaq Plunges: Tech Megacaps Lose $770 Billion

Here’s a⁤ breakdown of the key information‍ from the provided text, focusing on the impact of Donald Trump‘s trade threats on the tech market:

Key Events & Threats:

* New Tariffs Proposed: Donald Trump‍ announced a ⁤100%⁣ tariff ‍on china, to be implemented ‍on November 1st, along with export controls on critical software.
* Past⁤ Tariff Concerns: The ⁢market reacted negatively to previous tariff threats from‍ Trump in April, described as “reciprocal” duties.
* rare Earths ⁢mentioned: Trump also alluded to threats regarding⁤ rare-earths (link provided).

Market ‍Impact⁣ (Friday & ‍Extended Trading):

*⁣ Significant Declines: The Nasdaq fell 3.6% and the ‍S&P 500 ⁤dropped 2.7% – the worst single-day performance ⁤sence April (when previous tariff concerns arose).
* Big Tech ⁢Losses:

*‍ Nvidia: Lost nearly $229 billion in ‍market capitalization. Slipped 2% ⁤in extended trading.
* Microsoft: ⁢ Market cap dropped by $85 ⁢billion.
⁢ *⁤ Amazon: ⁢Lost $121⁢ billion in value during the day, wiping out its year-to-date gains. Now down 2% for⁢ 2025.Slipped 2% in extended trading.
* Tesla: Also slipped‍ about 2% in extended trading.
*‍ Disrupted Rally: the threats are ⁤disrupting a sustained rally in the tech sector fueled ⁣by‍ investment in artificial intelligence infrastructure.

AI & ⁤Company Specifics:

* nvidia’s Position: Nvidia, a key player in AI (producing GPUs⁢ for training AI models), had recently reached a $4.5 trillion market cap but suffered a major loss.
* OpenAI’s Growth: ⁢ OpenAI (backed by Microsoft) is experiencing rising demand, with:
* Sora 2 video creation app launched.
‍ ⁣ * ChatGPT boasting over 800 million weekly users.
* Cloud Competition: Amazon and Microsoft are⁢ competing ‍to rent out GPU capacity from their cloud data centers.

Overall Sentiment: ‍The market⁢ is reacting negatively to the uncertainty created‍ by Trump’s trade threats, notably impacting companies heavily involved in AI and cloud computing.