Nasdaq Tumbles into Bear Market Amidst Global Trade War Fears

The Nasdaq Composite index plummeted over 20% from its recent peak, signaling a bear market, as trade war concerns intensified following President Trump's tariffs on imports. The index dipped 2.8% with China's additional retaliatory tariffs exacerbating market instability and fears of a global economic downturn.

The Nasdaq Composite index, characterized by its tech-heavy composition, officially entered bear market territory on Friday. This downturn reflects a more than 20% drop from its latest record high, driven by investor caution in the face of escalating trade tensions.

On April 2, President Donald Trump introduced a sweeping 10% tariff on all U.S. imports, targeting key tech production countries such as China, Taiwan, and Vietnam. This move intensified an existing selloff, fueled by anxiety over AI spending, which previously placed the Nasdaq into a corrective phase last month.

The index experienced a 2.8% decline as China retaliated by imposing a significant 34% tariff on U.S. products, marking the most severe escalation in the trade conflict thus far. The Nasdaq's descent from its December 16 record high of 20,173.89 lends credence to definitions of a bear market, typically identified by a 20% decrease from peak valuations.

(With inputs from agencies.)