Finance
Trump tariffs triggered big Q1 plunge in market values for top global firms
Published by Global Banking & Finance Review®
Posted on April 1, 2025
2 min readLast updated: January 24, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on April 1, 2025
2 min readLast updated: January 24, 2026
Trump's tariffs led to a 13.2% market value drop for top firms in Q1 2025, fueling US recession fears and impacting tech stocks.
(Reuters) - Top global corporations experienced the largest quarterly erosion of market values in nearly three years in the first quarter of 2025, hit by tariffs imposed by U.S. President Donald Trump, which are fuelling heightened concerns of a U.S. recession.
According to LSEG data, the top 10 global companies saw a 13.2% decrease in their market value to $18.64 trillion at the end of Q1 2025, marking the biggest drop 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.
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.
(Reporting by Patturaja Murugaboopathy and Gaurav Dogra in Bengaluru; Editing by Frances Kerry)
The top 10 global companies experienced a 13.2% decrease in their market value.
Tesla Inc's market value dropped by 35.7%, while Broadcom Inc and NVIDIA Corp saw decreases of 27.56% and 19.59%, respectively.
The Nasdaq Composite index declined by 10.42%, marking its highest drop since June 2022.
Higher tariffs, slower economic growth, and increased inflation concerns contributed to the market decline.
Goldman Sachs downgraded the EPS growth forecast for S&P 500 companies to 3% for the year, down from a previous estimate of 7%.
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