The Nasdaq Composite officially slipped into bear market territory on Friday, falling more than 20% from its recent peak, as investor anxiety deepened over President Donald Trump’s sweeping new tariffs and escalating global trade conflicts.
The tech-heavy index was dragged lower by sharp selloffs in major technology stocks, fueled by Trump’s announcement earlier this week of a 10% blanket tariff on all U.S. imports. The levies hit especially hard on key tech manufacturing nations like China, Taiwan, and Vietnam—destinations deeply tied to the global electronics supply chain.
Friday’s market tumble intensified after China retaliated with its own set of harsh tariffs—34% on U.S. goods—escalating fears of a full-blown trade war that could derail global economic growth. 
By midday Friday, the Nasdaq was down 3.8%, putting it more than 20% below its December 16 record closing high of 20,173.89. Under the standard definition, a bear market is triggered when an index drops at least 20% from a recent high.
The broader market wasn’t spared. The S&P 500 has fallen nearly 15% from its own record close of 6,144.15, inching dangerously close to bear territory. Meanwhile, the Dow Jones Industrial Average was poised to confirm a correction—defined as a 10% drop from peak levels.
Technology leaders that once powered Wall Street’s rally were among the hardest hit.
Apple shares have plummeted 12.5% since Trump’s tariffs were introduced, facing pressure as its China-based production lines become increasingly expensive to maintain under a new 54% aggregate tariff burden. Alphabet and Microsoft have also taken hits, down 5.3% and 4.3% respectively.
Meta Platforms dropped 12.6% while Amazon slid 13.3% during the same stretch.
Tesla saw the steepest losses of the group, plunging 37% in just two days. The EV maker is now facing backlash over CEO Elon Musk’s political entanglements and concerns about slowing consumer demand.
Nvidia, which had recently surged to the top of the AI boom, lost 11.2% amid fears that enterprise spending on AI infrastructure and data centers is beginning to cool.
A popular ETF tracking the “Magnificent Seven” — the elite group of mega-cap tech stocks — has plunged nearly 27% since hitting its peak in December, wiping out billions in market value and reflecting the broader shift away from risk-heavy assets.
As tensions rise and markets reel, investors are bracing for further volatility ahead, with global economic momentum increasingly at risk.
