April 10 — Microsoft has surpassed Apple to become the most valuable company in the world.
This came after Apple’s stock market plunged more than 20% over the past three trading days, reducing its market capitalisation to $2.59 trillion, while Microsoft, also suffering a slight drop of 0.92%, achieved a market capitalisation of $2.63 trillion.
The day on Wall Street was volatile, with a moment of optimism when it was announced that some 70 countries had contacted Trump to negotiate the possible withdrawal of tariffs. However, sentiment plummeted when the White House announced an increase in tariffs on China of up to 104%.
In response to Trump’s 104% increase, China raised its retaliatory tariffs from 34% to 86% which, in turn, has prompted the White House to increase the tariffs from 104% to 125%.
The stock market reacted quickly, with the world’s largest tech companies, especially Apple, Microsoft, and Nvidia, bearing the brunt of Trump’s announcements.
The 10% global tariff imposed by the US president last Saturday and the increase in reciprocal tariffs raised fears of an economic recession, which hit stocks of major technology companies.
In particular, Apple has been hit hardest due to the company’s reliance on China for iPhone manufacturing, with nearly 90% of units manufactured there. Analysts predict that prices could triple if production shifts to the U.S. as a result of the country’s trade war with China.
The drop in Apple’s stock value reflects the difficulties that major technology companies are facing in this context of global trade uncertainty. While Apple lost almost 5%, Microsoft managed to remain above $2.6 trillion in market capitalisation, consolidating its position as the most valuable company in the world.
As mentioned above, the impact of the tariffs wasn’t limited to Apple. Other tech companies like Nvidia, Amazon, and Alphabet also experienced notable declines. Collectively, these companies saw their total market capitalisation fall from over $3 trillion to around $2 trillion.
Behind Microsoft and Apple are Nvidia (with a market capitalisation of $2.34 trillion), Amazon ($1.08 trillion), Alphabet ($1.77 trillion), Saudi Arabian oil company Aramco ($1.63 trillion), Meta ($1.29 trillion), and Berkshire Hathaway ($1.06 trillion).