How are the 'Magnificent Seven' reacting to Trump's tarrifs in aftermarket trade?

It goes without saying that these companies tend to set the agenda for the entire US stock market.

Sebastian Bowen

Author Bio Sebastian Bowen has been a Motley Fool contributor since late 2018. Sebastian found his passion for writing and educating others about shares and all things finance after completing his studies in political, economic and social science and enjoys bringing this passion to life at the Fool. His investment philosophy is a simple one – buying high-quality companies at prices that make sense. When he’s not researching his next investment at all hours of the morning, Sebastian enjoys classic movies and likes to unwind with a good book, newspaper or record. Areas of Expertise Dividend investing ETFs Education Bachelor of Political, Economic, and Social Sciences (Government and International Relations), University of Sydney Social Media X/Twitter Favorite Investment Quote "In the short run, the market is a voting machine, but in the long run, it is a weighing machine." – Benjamin Graham

Published April 3, 2025 3:16 pm AEDT

As most ASX investors watching the markets today would already know, it's been a tough day to be invested. After the 'Liberation Day' tariff announcements out of the United States this morning, the markets are currently in freefall, with the S&P/ASX 200 Index (ASX: XJO) down a nasty 1.1% at present. But what about the US markets and the 'Magnificent Seven' tech stocks in particular?

Over the past few years, the Magnificent Seven have grown to represent a massive chunk of the entire US market. To demonstrate, right now, Apple Inc (NASDAQ: AAPL), Microsoft Corporation (NASDAQ: MSFT), NVIDIA Corp (NASDAQ: NVDA), Amazon Inc (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Meta Platforms Inc (NASDAQ: META), and Tesla Inc (NASDAQ: TSLA) represent 30.1% of the S&P 500 Index (SP: .INX). That's seven companies out of 500 that take up nearly a third of the rooms at the S&P 500 hotel.

So, it goes without saying that these companies tend to set the agenda for the entire US stock market.

Trump's Liberation Day announcements were coincidentally made just after the US markets closed this morning (our time). So, we'll have to wait until tonight to see how these announcements go down in regular trading hours. However, the US markets do have after-hours trading, which was in effect for these announcements. Today, let's check out how the Magnificent Seven stocks reacted to Liberation Day in this window.

A corporate team stands together and looks out the window. — Image source: Getty Images

Liberation Day tariffs wreck Magnificent Seven stock prices

By the time extended trading had closed, Apple stock had dropped 7.14% to US$207.91 a share.

Microsoft stock suffered a 3.05% fall to US$370.50.

Nvidia shares closed 5.68% lower at US$104.15.

The Amazon share price tumbled 6.1% to finish at US$184.06.

Alphabet's Class A stock (GOOGL) was hit with a 3.57% sell-down to US$151.43.

Facebook and Instagram-owner Meta Platforms tanked 4.83% to close extended trading at US$555.70 a share.

And, saving the worst until last, Tesla stock plunged 8.01% to finish at U$260.12.

ASX investors seem to be reading the tea leaves today. The ASX-traded iShares S&P 500 ETF (ASX: IVV) has fallen 1.75% in trading today, down to $58.40 a unit.

The Magnificent Seven-heavy BetaShares Nasdaq 100 ETF (ASX: NDQ) has fared even worse, losing 2.14%. And the Global X FANG+ ETF (ASX: FANG), which has a rough 60% weighting to the 'Mag Seven' (not including Tesla), has shed 2.58%.

It will be very interesting to see how these Magnificent Seven companies react in full trading tonight on the US markets. We could be in for a rough ride.

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