Microsoft Reclaims Throne as Apple's Stock Tumbles Amid Tariff Turmoil

In the past four trading days, Apple has experienced a significant downturn, with its stock price plummeting by 23%. This substantial decline has allowed Microsoft to reclaim its position as the most valuable publicly-listed company globally.

As of Tuesday's close, Microsoft's market capitalization stood at $2.64 trillion, surpassing Apple's $2.59 trillion. The shift in market leadership highlights the volatility within the tech sector, exacerbated by external economic pressures.

The catalyst for this market movement can be traced back to U.S. President Donald Trump's extensive tariff plan. The iPhone maker has been particularly vulnerable due to its dependency on overseas markets, suffering more than its peers in the tech industry.

Contributing to the anxiety in the market, the Nasdaq index has fallen by 13% over the same period. The imposition of tariffs on imports from over 100 countries has sparked fears of rising prices potentially triggering an economic downturn. Analysts speculate that the price of the iPhone 16 Pro Max in the U.S. could surge by as much as $350.

Before this recent sell-off, both Apple and Microsoft, along with chip manufacturer Nvidia, had seen their market values exceed the $3 trillion mark. Despite setbacks earlier this year, when Microsoft's revenue forecasts appeared disappointing, the company is perceived to be less affected by the uncertainties surrounding tariffs compared to many of its industry peers.

In early 2024, Microsoft's position as the top company by market value was overtaken by Apple, illustrating the ongoing tug-of-war between these technology behemoths for the premier position in the stock market.