On Monday, April 7, 2025, the U.S. stock market showed signs of stabilization after a volatile week triggered by President Donald Trump’s aggressive tariff policies. However, three tech giants—Apple, Microsoft, and Tesla—continued to slide, testing multi-month lows and shedding significant value.

The Dow Jones Industrial Average fell 349 points, while the Nasdaq Composite eked out a 0.1% gain after a 10% plunge the prior week—its worst since March 2020. Amid this turbulence, Apple, Microsoft, and Tesla were the only “Magnificent Seven” stocks to decline on Monday, spotlighting the unique pressures these companies face.

This article explores why Apple, Microsoft, and Tesla stocks fell and provides updated price data and analyst predictions to inform your next steps.

Trump’s Tariffs and Wall Street’s Reaction

President Trump’s tariff policy, enacted in early April 2025, imposes a sweeping 54% duty on imports from China—America’s second-largest trading partner—alongside 26% tariffs on India and 46% on Vietnam. Announced on April 2 in the White House Rose Garden as part of a “Liberation Day” strategy, these measures aim to bolster U.S. manufacturing but have ignited fears of a global trade war.

The tariffs, effective from April 9, target key sectors like technology and automotive, threatening to disrupt supply chains and inflate consumer prices. Retaliatory threats from China, the EU (20% on U.S. imports), and Canada (25% on U.S. vehicles) have further clouded the economic outlook.

On Monday, April 7, Wall Street’s main indexes reflected this unease. The Dow Jones Industrial Average dropped 349 points, or 0.82%, closing at 42,576.73, driven by losses in tariff-sensitive industrials and tech. The S&P 500 fell 0.47% to 5,645.23, erasing earlier gains as investors weighed tariff fallout against a stabilizing broader market.

Meanwhile, the Nasdaq Composite bucked the trend, edging up 0.1% to 17,987.25, buoyed by late-day buying in select tech stocks despite declines in Apple, Microsoft, and Tesla.

"We are in a period of heightened market uncertainty, with growing fears of a global recession. Investors are pulling away from assets perceived as risky, and that now includes even the biggest tech names," said Aran Hawker, CEO at CoinPanel.

"A key factor here is the escalating tariff war. For companies like Tesla and Apple, which rely heavily on overseas manufacturing especially in China, new or threatened tariffs directly impact costs and margins. Even for software-driven firms like Microsoft, there’s significant reliance on physical infrastructure."

This mixed performance underscores the market’s struggle to digest Trump’s policies, with the Nasdaq’s prior 10% weekly loss signaling deeper tech-sector vulnerability.

However, on Tuesday, April 8, 2025, futures for the major indexes are rebounding. S&P 500 Futures are up 1.4% to 5,167, Nasdaq 100 Futures are gaining 1.3% and stand at 17,799, while Dow Jones Futures are rising 1.8% to 38,846.

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Why Is Apple Stock Down? A Tariff-Induced Storm

Apple’s stock (NASDAQ: AAPL) closed at $181.46 on Monday, April 7, down 3.67% from its previous close of $188.38, capping a brutal three-day stretch where it lost nearly 20% of its value—wiping out $638 billion in market capitalization.

Analysts attribute this plunge to Trump’s tariffs, given Apple’s reliance on China, where 90% of iPhones are assembled. The 54% tariff on Chinese imports threatens to inflate costs significantly. Apple’s efforts to diversify production to India, Vietnam, and Thailand offer little respite, with those countries facing tariffs of 26% and 46%, respectively.

Analysts present two scenarios: Apple could raise prices—UBS estimates a $350 hike for the $1,199 iPhone 16 Pro Max—or absorb the costs, cutting into margins. Barclays’ Tim Long warns of a potential 15% earnings-per-share hit if prices remain static. Real-world example: A price jump to $1,549 could deter upgrades, reducing demand—a textbook supply-and-demand shift.

Technical Analysis for Apple

As my technical analysis shows, Apple’s declines have halted at the upward gap from early May, which currently serves as a key support level. Two major resistance zones are emerging at $196–$200, where the highs from the turn of 2023 and 2024 are located.

The $209 level also appears significant, marking the March lows and the lower boundary of the downward gap from early April. Only a return above this level would renew my confidence in Apple’s potential for stronger gains and a move back toward $260.

Why Is Microsoft Stock Price Falling? Collateral Damage in a Trade War

Microsoft’s stock (NASDAQ: MSFT) closed at $357.86 on April 7, down 0.55% from $359.84, reflecting a milder but notable decline. While less directly tied to manufacturing tariffs than Apple, Microsoft faces indirect pressures. Its Azure cloud Cloud The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc The cloud or cloud computing helps provides data and applications that can be accessed from nearly any location in the world so long as a stable Internet connection exists. Categorized into three cloud services, cloud computing is segmented into Software as a Service (SaaS), Infrastructure as a Service (IaaS), and Platform as a Service (PaaS). In terms of trading, the versatility of the cloud service allows retail traders the ability to test out new trading strategies, backtest pre-existing conc Read this Term business relies on global data centers, some equipped with hardware from tariff-affected regions like China. Rising component costs could erode margins, critical for a segment that saw 33% year-over-year growth in Q1 2025.

Moreover, Microsoft’s enterprise clients may cut IT spending if tariffs slow global growth. Practical use case: A corporation opting for cheaper on-premises solutions over Azure could signal broader adoption risks. The stock hit its lowest level November 2023, reflecting investor unease.

Technical Analysis for Microsoft

What does the technical situation look like on Microsoft’s chart? The price has clearly drifted away from the support zone that persisted throughout 2024 around $390. The support defined by the July 2023 highs and December 2023 lows has also failed to hold.

At this point, in my view, a sharper decline in Microsoft’s stock price cannot be ruled out, potentially even toward the September lows from a few months ago around $309.

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How Low Can Tesla Go? Tariffs and a Brand Crisis

Tesla’s stock (NASDAQ: TSLA) closed at $233.29 on April 7, down 2.56% from $239.43, extending a week-long slide of over 10%. Wedbush Securities’ Dan Ives calls it a “perfect storm.” Tariffs threaten Tesla’s supply chain, with battery cells from China facing 54% duties. Although U.S. production mitigates some risk, Tesla’s China market—22% of revenue—faces retaliatory tariffs and competition from BYD.

Elon Musk’s Trump alignment has also sparked a brand crisis. X posts highlight boycotts by liberal buyers, while Ives notes “unprecedented brand damage” in China and Europe. Real-world impact: Q1 2025 deliveries fell 13% to 336,681 units, signaling demand erosion amid political and economic pressures.

"If supply chains are disrupted or component costs rise, the long-term expense of maintaining and expanding that infrastructure could spike. That adds risk in investors' eyes, especially in a climate where protectionism is rising and global trade flows are under pressure. As a result, even traditionally strong stocks are seeing pressure as investors move to de-risk," Hawker concluded.

Technical Analysis for Tesla

Tesla’s technical chart differs significantly from those of Apple and Microsoft. Why? Primarily because the local lows from March have not been breached, and the $220 level continues to protect the bulls from further declines.

At the moment, I’m mainly focused on the $270 resistance, which aligns with the highs from July, September, and October 2024, as well as the $289 level, the peak from late March. Together with the current $220 level, this forms a range within which Tesla’s stock price may currently fluctuate.

Analyst Price Predictions and Recommendations

Here’s what experts predict as of April 8, 2025:

Highlights resilience in cloud growth.

*Note: UBS rating inferred as "Neutral" based on cautious outlook; not explicitly stated.

Apple

• Wedbush (Dan Ives): Cut target from $325 to $250, citing tariffs, but holds “Outperform.”
• UBS: Sees $200 if prices rise by $350, factoring in demand resilience.
• Barclays (Tim Long): Neutral at $190, warns of 15% EPS cut.

Microsoft

• JPMorgan: “Overweight” at $450, views tariff impact as secondary.
• Morgan Stanley: Targets $460, “Outperform,” citing cloud strength.

Tesla

• Wedbush (Dan Ives): Slashed target from $550 to $315, “Outperform,” urges brand fixes.
• JPMorgan: Bearish at $120, “Underweight,” citing deliveries and tariffs.

Key Takeaways for Investors

The Monday declines of Apple, Microsoft, and Tesla reflect Trump’s tariffs’ broad reach. Apple’s China exposure, Microsoft’s indirect hits, and Tesla’s supply chain and brand woes highlight vulnerabilities. Beginners learn geopolitical risk’s weight; traders reassess holdings. Your technical analysis will guide short-term moves, but long-term success depends on adaptation—price hikes, supply shifts, or brand repair. Analyst outlooks suggest volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term ahead, yet opportunities remain for the astute investor.

FAQ: Why Are Apple, Microsoft, and Tesla Shares Dropping?

Why Are Apple Shares Dropping Amid Trump’s Tariffs?

Apple shares fell 3.67% to $181.46 on April 7, 2025, losing $638 billion in market cap over three days. The primary reason is Trump’s 54% tariff on Chinese imports, where 90% of iPhones are assembled. Additional tariffs on India (26%) and Vietnam (46%)—where Apple has diversified production—exacerbate the issue. Analysts warn Apple may raise iPhone prices by $350 or face a 15% earnings-per-share cut, impacting investor confidence.

Why Is Microsoft Stock Declining Despite a Broader Tech Recovery?

Microsoft’s stock dipped 0.55% to $357.86 on April 7, 2025, despite the Nasdaq gaining 0.1%. While less exposed to direct tariffs, Microsoft faces indirect pressure from rising costs of hardware components sourced from tariff-hit regions like China, affecting its Azure cloud business margins. Additionally, a potential global slowdown could lead enterprise clients to cut IT budgets, contributing to the stock’s decline.

Why Are Tesla Shares Falling Amid Trump’s Tariff Policies?

Tesla shares dropped 2.56% to $233.29 on April 7, 2025, due to a “perfect storm” of challenges. Trump’s 54% tariffs on Chinese imports impact Tesla’s battery supply chain, while retaliatory tariffs in China—where Tesla earns 22% of revenue—threaten sales. A brand crisis linked to Elon Musk’s alignment with Trump has also sparked boycotts, with Q1 2025 deliveries down 13% to 336,681 units, fueling the stock’s decline.