Catenaa, Tuesday, April 01, 2025- Top 10 global corporations saw a 13.2% decrease in their market value to $18.64 trillion in the first quarter of 2025, LSEG data said on Tuesday, making the biggest drop in market values since June 2022.
The prolonged surge in tech stocks, which had been a key driver of equity index gains, lost momentum as concerns over excessive AI investments, stretched valuations and uncertain profitability triggered market caution.
Tesla Inc’s market value plummeted by 35.7% to $833.59 billion, while Broadcom Inc and NVIDIA Corp recorded a 27.56% and 19.59% drop in market capitalization to $787.25 billion and $2.64 trillion, respectively.
Market capitalization of other magnificent seven stocks such as Amazon dropped to $2.01 trillion, Meta to $1.45 trillion and Alphabet to $1.89 trillion.
The Nasdaq Composite index, which had surged approximately 84.5% over the previous two years, declined by 10.42%, marking the highest drop since June 2022.
In the first quarter, Trump imposed tariffs on aluminum, steel, and autos, along with increased tariffs on all goods from China.
Trump said on Sunday that the reciprocal tariffs he plans to announce on Wednesday will apply to all countries, not just those with the largest trade imbalances, deepening investor concerns.
Goldman Sachs has downgraded the EPS growth forecasts for S&P 500 companies to 3% this year, down from its previous estimate of 7%, citing higher tariffs, slower economic growth, and increased inflation.
“Slowing growth and rising uncertainty warrant a higher equity risk premium and lower valuation multiples for equities,” it said.
