By Adam Clark
Amazon.com was the steepest faller among the so-called Magnificent Seven stocks early on Tuesday. The group of large technology companies were all falling as investors fled perceived riskier assets after President Trump ramped up tariff threats against a number of European countries in his push for U.S. ownership of Greenland.
Amazon was down 3.1% in premarket trading. All of Google-parent Alphabet, Nvidia, Tesla and Meta Platforms were falling more than 2% while Microsoft dropped 1.6% and Apple was down 1.4%.
The high valuations of technology companies make them vulnerable to sharp drops as investors seek haven assets. They could also be hit by slower economic growth if there is a protracted trade war between the U.S. and the European Union.
"If the U.S. carries out its threat and imposes an additional 25% tariff on European countries, and if there's like-for-like retaliation, it would lower U.S. GDP [gross domestic product] by 1% relative to our baseline at peak impact," said Oxford Economics Director of Global Macro Research Ben May and Senior Economist Rory Fennessy in a report Monday. "The peak hit to the Eurozone would be similar but more drawn out. The inflationary impact would be only modestly positive."
The effects of a trade war on each individual company are unpredictable, with potential European retaliation to tariffs including reciprocal levies, taxes on digital services and limiting U.S. companies' ability to bid on public procurement contracts.
Write to Adam Clark at adam.clark@barrons.com
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(END) Dow Jones Newswires
January 20, 2026 06:36 ET (11:36 GMT)
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