Nasdaq's Bear Market Plunge Amid U.S.-China Trade Tensions

The Nasdaq entered a bear market amid escalating U.S.-China trade tensions, leading to recession fears and a tech sector downturn fueled by potential AI spending slowdown. Major tech companies like Apple, Google, and Nvidia face significant challenges as tariffs and complex production dynamics disrupt the market landscape.

The Nasdaq index faces a significant downturn as escalating trade tensions between the U.S. and China have driven it into bear market territory. The situation raises serious concerns for the tech industry, especially those companies at the forefront of the AI revolution.

On Friday, the market contracted significantly with China imposing retaliatory tariffs following President Trump's recent trade measures. Analysts warn this could cause tech earnings to drop by at least 15% and precipitate economic stagflation if current tariffs are maintained.

Technology behemoths, including Apple, Google, and Nvidia, are experiencing notable valuation drops as they navigate newly intensified trade barriers and changing supply chain challenges. The sector's future remains uncertain amid these global economic pressures.

(With inputs from agencies.)