Nvidia CEO Jensen Huang speaks with CNBC’s Jim Cramer at the CNBC Investment Club Event with Jim Cramer on October 7, 2025 at the New York Stock Exchange.
Kevin Stankiewicz | CNBC
shares of Amazon, Nvidia and tesla Each fell about 5% on Friday, as the tech giants lost $770 billion in market capitalization after President Donald Trump threatened to raise tariffs on Chinese goods.
Trillion-dollar tech companies increasingly account for a larger portion of the U.S. market, and their declines pushed the Nasdaq down 3.6% and the S&P 500 down 2.7%. It was the worst day for both indexes since April, when President Trump said he would impose “reciprocal” tariffs on U.S. trading partners.
After markets closed on Friday, President Trump announced in a social media post that the U.S. would impose 100% tariffs on China and impose export restrictions on “any and all critical software” on Nov. 1.
Amazon, Nvidia, and Tesla all fell about 2% in after-hours trading after the posting.
The president’s latest threats have disrupted, at least temporarily, the continued rise in a technology market built on hundreds of billions of dollars in planned spending on artificial intelligence infrastructure.
In late September, Nvidia, which makes graphics processing equipment for training AI models, became the first company to reach a market capitalization of $4.5 trillion. Nvidia alone lost nearly $229 billion in market capitalization on Friday.
OpenAI leverages Nvidia’s GPUs from a range of cloud suppliers, including: microsoft. The demand for OpenAI will only increase.
In September, the company announced its video creation app Sora 2, and this week the company announced that its ChatGPT assistant has more than 800 million weekly users. But Microsoft needs to buy infrastructure to operate its cloud data centers. On Friday, Microsoft’s market capitalization fell by $85 billion.
Selling was wiped out Amazon’s profit for the year. Its stock price is down 2% year to date in 2025. The company competes with Microsoft by renting GPUs from cloud data centers, but it doesn’t have much business with OpenAI. The online retailer is now worth $121 billion less than it was on Thursday.
“There’s still a lot of noise about the impact of tariffs on retail prices and consumption,” Amazon CEO Andy Jassy told analysts in July. “So far, much of it is wrong and misinformation. As I said before, it’s impossible to know what will happen.”
Tesla, which launched its low-cost car on Tuesday, lost $71 billion in market capitalization.
Automakers will report their third-quarter results on October 22nd, and Microsoft is expected to announce its financial results the following week. Nvidia reported in November.
Google’s parent company alphabet and facebook owner meta They fell nearly 2% and 4%, respectively.
View: Press. President Trump: Calculating major increases in tariffs on Chinese goods for the US
