Shares of Nvidia (NVDA), Apple (AAPL), and Tesla (TSLA) all dropped significantly on Friday, leading the downturn of the major tech companies known as the "Magnificent Seven" due to an escalating trade dispute causing widespread selling on Wall Street.

Nvidia, a chipmaker, saw its stock decrease by over 7%, while Tesla, an electric vehicle maker, fell by more than 10%, contributing to the Nasdaq Composite (^IXIC) entering bear market territory.

Meta (META), a social media platform, also experienced a more than 5% decline in its shares. Apple's stock took a hit with a 7% drop after the company lost over $310 billion of its market value in the previous session, marking its worst day since March 2020.

The tech industry faced a second consecutive day of losses following China's announcement of retaliatory tariffs against the US in response to President Trump's trade policies imposing levies on imports from various nations.

These actions by Trump, including increased tariffs on China raising their rate to 54%, raised concerns about higher prices for electronics, such as $3,500 iPhones, leading some analysts to warn about potential negative impacts on the tech sector and the economy.

Analyst Dan Ives from Wedbush expressed concerns about the consequences of the tariffs, stating that reverting to past manufacturing practices through these tariffs could lead to economic challenges and harm the technology sector and AI development.

Treasury Secretary Scott Bessent defended Trump's trade decisions in an interview, attributing the market declines to factors like the Chinese AI announcement from DeepSeek impacting companies like Nvidia. Bessent emphasized that market fluctuations are common and not solely due to the President's policies.

Despite the market downturn, there was a temporary rebound in stock losses on Friday morning following news that Vietnam is considering reducing tariffs to zero in negotiations with the US, sparking optimism for similar agreements with other countries.