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Skerdian Meta•Monday, April 7, 2025•2 min read

Stock markets opened lower today, but most tech stocks have pared losses, while Apple shares remain 5% lower, as does Dow Jones Industrial Average.

Markets Struggle Amid Deepening US-China Trade War

Global markets faced another tough week as escalating trade tensions between the U.S. and China triggered a wave of risk-off sentiment. Worries about a potential global recession added to the pressure, leading to sharp losses across major indices. The Nasdaq Composite, falling more than 20% from its December peak, officially entered bear market territory.

The Dow Jones Industrial Average (DJIA) took a heavy hit, dropping over 7.5% last week and currently sitting around 15% lower overall. Earlier today, the index dipped nearly 20% after a steep gap down at the open, though it managed to recover some of those losses. The S&P 500 also slipped more than 0.5% today, while the Dow remained down about 1.5% intraday.

Despite opening 4% lower, the Nasdaq managed to turn slightly positive later in the session—highlighting the volatility and pressure facing tech stocks. On the weekly chart, longer-term technical indicators still suggest a positive bias for equities, which could present a buying opportunity for longer-term investors.

Apple Takes the Brunt of Trade Fallout

Apple Inc. (AAPL) has been at the forefront of the recent sell-off. The stock closed last week with a sharp 13.3% loss, extending its decline from the 2024 high above $260 seen in late December. The downward momentum has only intensified as new tariffs were announced, particularly hitting Apple due to its significant manufacturing exposure in China.

Over the past few sessions, Apple opened with large downward gaps, reflecting crumbling investor confidence. After closing at $188.40 on Friday, AAPL saw further selling in after-hours trading and opened today at $177.24—a drop of around 6%. Although it briefly rebounded during the day, the gains were short-lived, and shares are currently down 5%.

With China retaliating against U.S. tariffs and the overall import tax rate on Apple products rising to 54%, the tech giant may be forced to raise prices, which could hurt demand. Given that most iPhones are produced in China, Apple finds itself especially vulnerable in this trade conflict.

White House Offers Mixed Signals

U.S. President Donald Trump stated today that tariffs on Chinese goods are likely to remain in place, although there may be flexibility for other trading partners. Commerce officials attempted to calm the markets over the weekend, but their reassurances have done little to halt the sell-off—particularly for stocks like Apple that are directly impacted by the tariffs.

Outlook: Volatility to Persist

As trade tensions continue to escalate, markets are likely to remain choppy. Apple, along with other tech giants, could see further downside if diplomatic progress is not made soon. However, if negotiations between the U.S. and its trade partners gain traction, investors might find renewed confidence. Until then, expect continued volatility—and for Apple, more pressure ahead.

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