Wall Street’s ‘Mag 7’ halt three-day rebound on tariff threat to drag Nasdaq lower by 1.5%; Nvidia, Tesla crack 5%

Wall Street's ‘Magnificent Seven’: The US stock market was dragged by a major selloff in tech mega caps on Wednesday, March 26, which snapped a three-day rebound due to concerns about the economic impact of tariff hikes. Following their biggest winning run since November, the group of big techs known as ‘Magnificent Seven’ got hit, with Nvidia and Tesla sinking over five per cent.

The tech-heavy Nasdaq 100 index slipped 1.5 per cent dragged by tech giants Nvidia and Tesla. However, a measure of big banks rose for a ninth straight day - the longest rally since 2006. The S&P 500 fell 0.3 per cent. Trading volume was 20 per cent below the average of the past month. The Dow Jones Industrial Average rose 0.3 per cent. The Russell 2000 slid 0.3 per cent in mid-market.

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Why did Wall Street's ‘Magnificent Seven’ trade lower today?

US tariffs on copper imports were said to be coming within several weeks, months earlier than the deadline for a decision. While the unpredictability of a trade war and the risk of weaker economic growth have roiled markets, US President Donald Trump has signalled plans to press ahead with those levies.

On April 2, he plans to impose so-called reciprocal tariffs on nations that export more to the US than they import from it and disadvantage American companies with trade barriers beyond import taxes. Wall Street experts said tariffs will continue to garner attention, with traders looking for any updates on upcoming US reciprocal tariffs that will go into effect on April 2, 2025.

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However, investors also anticipated that Trump could soften his stance after he hinted that not all tariffs would be imposed by the April 2 deadline, with potential exemptions for certain countries—though the details remain unclear.

This provided a degree of stability to Wall Street over the past two sessions, with the major indexes reaching two-week highs. The S&P has climbed four per cent since its mid-March lows, while the Nasdaq has surged approximately six per cent.

Wall Street Today

The yield on 10-year Treasuries advanced four basis points to 4.35 per cent on Wednesday. The US dollar gained 0.1 per cent. Tariffs and weakening survey data are set to weigh on the US stock market for the rest of the year, according to Barclays strategists, who cut their 2025 S&P 500 price target to 5,900 from 6,600.

Six of the 11 S&P 500 sectors edged higher, led by energy's 0.9 per cent rise. Crude prices climbed as investors priced in tighter global supply following the US threat of tariffs on nations buying Venezuelan oil. Spot gold was down 0.1 per cent at $3,015.5 an ounce. US gold futures fell 0.1 per cent to $3,022.10.

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