Jensen Huang, CEO of Nvidia, speaking with CNBC’s Jim Cramer during a CNBC Investing Club with Jim Cramer event on the Recent York Stock Exchange on Oct. seventh, 2025.
Kevin Stankiewicz | CNBC
Shares of Amazon, Nvidia and Tesla each dropped around 5% on Friday, as tech’s megacaps lost $770 billion in market cap, following President Donald Trump’s threats for increased tariffs on Chinese goods.
With tech’s trillion-dollar firms occupying an increasingly large slice of the U.S. market, their declines sent the Nasdaq down 3.6% and the S&P 500 down 2.7%. For each indexes, it was the worst day since April, when Trump said he would slap “reciprocal” duties on U.S. trading partners.
After market close on Friday, Trump declared in a social media post that the U.S. would impose a 100% tariff on China and, on Nov. 1, it might apply export controls “on any and all critical software.”
Amazon, Nvidia and Tesla all slipped about 2% in prolonged trading following the post.
The president’s latest threats are disrupting, at the very least briefly, what had been a sustained rally in tech, built on a whole bunch of billions of dollars in planned spending on artificial intelligence infrastructure.
In late September, Nvidia, which makes graphics processing units for training AI models, became the primary company to achieve a market cap of $4.5 trillion. Nvidia alone saw its market capitalization decline by nearly $229 billion on Friday.
OpenAI counts on Nvidia’s GPUs from a series of cloud suppliers, including Microsoft. OpenAI is simply seeing rising demand.
In September it introduced the Sora 2 video creation app, and this week the corporate said the ChatGPT assistant now boasts over 800 million weekly users. Microsoft, which spends heavily on infrastructure to operate its cloud data centers, saw its market cap drop by $85 billion on Friday.
The sell-off worn out Amazon’s gains for the yr. That stock is now down 2% to date in 2025. Amazon competes with Microsoft to rent out GPUs from its cloud data centers. The net retailer lost $121 billion in value throughout the day.
“There continues to be numerous noise concerning the impact that tariffs can have on retail prices and consumption,” Amazon CEO Andy Jassy told analysts in July. “Much of it to this point has been flawed and misreported. As we said before, it’s unimaginable to know what’s going to occur.”
Tesla, which introduced lower-priced vehicles on Tuesday, saw its market capitalization sink by $71 billion.
The automaker reports third-quarter results on Oct. 22, with Microsoft earnings scheduled for the next week. Nvidia reports in November.
Google parent Alphabet and Facebook owner Meta fell 2% and almost 4%, respectively.
WATCH: Pres. Trump: Calculating massive increase of tariffs on Chinese products into U.S.
