Amid concerns of an economic recession in the U.S., on the 10th (local time), large-cap tech stocks in the New York stock market are all experiencing significant declines. Particularly, the stock prices of large-cap tech companies, which had risen dramatically over the past two years due to the AI boom, are facing selling pressure due to concerns over an economic downturn arising from President Donald Trump's tariff war.
At 11:37 a.m. Eastern Time on this day (8:37 a.m. Pacific Time), the stock price of Apple, ranked first in market capitalization, traded at $226.98, down 5.06% from the previous transaction day. The stock price dropped to $225.29 at one point, the lowest level since Jan. 27 (intraday low of $223.98). Due to the stock price decline, the market capitalization, which had approached $4 trillion at one point, shrank to $3.409 trillion.
At the same time, the stock price of electric vehicle manufacturer Tesla was at $241.66, a drop of 8% from the previous transaction day. Although it is intraday, this is lower than the closing price of $251.44 on last year's election day (Nov. 5) and has fallen to half of last year's record high of $479.86 on Dec. 17.
Meta Platforms (hereafter referred to as Meta), the parent company of Facebook, fell 4.45% and dropped below the $600 mark, while leading AI stocks such as Nvidia (-3.63%) and Alphabet (-3.97%), the parent company of Google, as well as Microsoft (-3.08%) and Amazon (-2.04%), all saw declines of around 3%. With rising prices due to the tariff war and a sluggish pace of interest rate cuts, there are concerns about an economic recession, and comments from President Trump are exacerbating the declines.
In an interview with Fox News that was made public the previous day, President Trump responded to a question about whether he expects an economic recession this year by saying, "There is a transition phase in these matters," and noted, "What we are doing is a big deal of bringing wealth back to America, and this (creating results) takes time." He did not rule out the possibility of a short-term recession in pursuit of long-term policy goals.