Tech Sector To See Major Impact from Tariffs and Tesla's Delivery Numbers, Predicts Top Analyst: Calls April 2 As The 'Vortex Day' - Apple (NASDAQ:AAPL), Amazon.com (NASDAQ:AMZN)

Gene Munster, managing partner at Deepwater Asset Management, has expressed concern over the potential impact of new tariffs on the tech sector, particularly on “Mag Seven” stocks.

What Happened: Speaking to CNBC on Monday, Munster noted that most of the “Mag Seven” tech stocks have been on a downward trend this year, with Meta being the only exception. He anticipates that the sector could face additional pressure as new tariffs are set to take effect on April 2. Munster called April 2 the ‘Vortex Day’ and stated that this date is also significant as Tesla’s delivery numbers, expected to be weaker than anticipated, will be released.

While Munster believes that the market is in the early stages of a two-year bull run, he warns that any economic downturn could disrupt this trajectory. He also suggests that long-term investors may benefit despite short-term volatility.

The upcoming tariffs and Tesla’s delivery numbers are expected to have a significant impact on the market, particularly for companies like Tesla Inc. TSLA and Apple Inc. AAPL, which are more directly affected by the tariffs.

The Deepwater manager stated that the tech stocks haven’t reached their bottom yet and are poised to go higher by the end of 2025, thus suggesting that long-term investors may benefit despite short-term volatility.

Why It Matters: Considering the historical trend, three key members of the Magnificent Seven, including Amazon.com Inc. AMZN, Meta Platforms Inc. META, and Microsoft Corp. MSFT, have consistently delivered strong April returns, making the coming weeks potentially pivotal for traders looking to buy on recent dips. Munster believes that March is going to be a tough quarter for Tesla, though.

Munster dismisses the notion that Musk should take a different approach, arguing that Musk is making decisions in Tesla's long-term best interest. Despite the challenges, Tesla's stock remains resilient, trading at high valuations, which Munster sees as a testament to investor confidence in the company's long-term vision.

He highlights Tesla's focus on AI and robotics, particularly its Full Self-Driving (FSD) and Optimus humanoid robot projects, as key elements of its future strategy.