Nasdaq Nosedive: Tech Stocks Tumble Amid Trade War Tensions

The Nasdaq Composite index is falling into a bear market, with a 20% drop from its December high. U.S. tariffs on tech-heavy nations have stoked fears of a trade war, impacting major tech stocks and the broader market. The S&P 500 and Dow are also nearing substantial drops.

The Nasdaq Composite index, heavily laden with tech stocks, is on the brink of confirming a bear market, plummeting over 20% from its record high as investors shy away from risk. The drop follows fears ignited by new tariffs imposed by President Donald Trump, which could trigger a global trade war and economic downturn.

This week, Trump enforced a 10% baseline tariff on all U.S. imports, targeting significant tech production hubs such as China, Taiwan, and Vietnam. This exacerbated an already jittery market concerned about reduced AI spending, initially pushing the Nasdaq into correction territory. By Friday, the index had slid 3.8% further after China responded with a steep 34% tariff on American goods.

Since the announcement of the U.S. levies, notable tech giants like Apple, Alphabet, Microsoft, Meta Platforms, Amazon, Tesla, and Nvidia have suffered substantial losses. An ETF tracking the Magnificent Seven, key names responsible for Wall Street's upsurge, has similarly declined by about 27% since December.

(With inputs from agencies.)