Apple's fortunes decline, Microsoft reclaims the title of the world's most valuable company.
Microsoft has once again surpassed Apple in market capitalization, as Apple's stock has come under significant pressure from President Donald Trump's tariff plans.
In just four volatile trading sessions, Apple's stock plummeted 23%, resulting in a significant drop in market capitalization and allowing Microsoft to once again become the world's most valuable publicly traded company.
As of the close of trading on April 8th, Microsoft's market capitalization reached $2.64 trillion, surpassing Apple's $2.59 trillion. This marks the second time this year that Microsoft has reclaimed the number one spot, having previously overtaken Apple earlier in 2024.
The main reason for Apple's slump stems from the wave of concerns about President Donald Trump's plan to impose comprehensive tariffs.
The new policy is expected to affect imports from more than 100 countries, raising concerns about inflation and the risk of a global economic recession.
The Nasdaq, a major US electronic stock exchange, has fallen by as much as 13% in just the last four sessions, reflecting the market's negative reaction to this news.
While the entire tech market is affected, Apple appears to be the hardest hit. This is because the iPhone manufacturer has a high degree of reliance on its supply chain in China, a region that could be severely impacted by the new tariffs.
According to forecasts from analysts at UBS (Switzerland), the world's largest and most reputable financial group, published on April 7th, the price of the iPhone 16 Pro Max could increase by up to $350 in the US market if the new tariffs take effect. This would not only affect sales but also significantly impact investor sentiment regarding Apple's growth prospects.
In contrast to Apple, Microsoft appears to be holding its own better amidst the current wave of instability.
Despite having released less-than-optimistic revenue guidance in January of this year, Microsoft was recently ranked among the "companies better protected" from tariff-related risks in a report by analysts at the US-based financial and investment banking firm Jefferies.
This advantage stems from the software company's global operating structure and its lower reliance on vulnerable supply chains.
Prior to the recent sell-off, Apple, Microsoft, and Nvidia had all reached valuations exceeding $3 trillion, a historic milestone for the stock market.
However, the current situation suggests that investors are re-evaluating major technology stocks amid the unpredictable changes in global trade policy.