Nasdaq 100 Sinks Into Bear Market as Trump Tariffs Spark Rout
Source: Bloomberg
April 4, 2025 at 10:35 AM EDT
Updated on April 4, 2025 at 4:10 PM EDT
The Nasdaq 100 plunged into a bear market with its losses from a February high surging past 20% as investors ditch once high-flying tech shares in a broad market rout.
The six-week selloff has wiped out roughly $6.4 trillion from the tech-heavy benchmark since its peak, spurred by worries President Donald Trump’s tariffs will push the US economy into recession. The market value destruction has been biggest in the likes of Apple Inc. and Nvidia Corp., companies whose worth swelled past $3 trillion on optimism about artificial intelligence. Apple, the last of the $3 trillion holdouts, closed on Friday with a market value of $2.8 trillion.
Over the slide, chipmakers Broadcom Inc. and Micron Technology Inc. have fallen more than 35%, while popular AI plays like Marvell Technology Inc. and Constellation Energy plunged at least 45%. Bloomberg’s Magnificent 7 index is off 25%, while Airbnb Inc. and Dexcom Inc. have tumbled more than 30%.
Even with the more than 20% pullback, the index’s components remain expensive relative to history, with a price-to-earnings ratio still above the average over the past two decades. For bulls, that’s a worrisome sign if a recession is in the offing.
Read more: https://www.bloomberg.com/news/articles/2025-04-04/trump-tariffs-drive-us-tech-shares-to-brink-of-bear-market
"Correction" = 10% drop from the high (which the Dow has now experienced)
"Bear market" = 20% drop from the high (which the Russell 2000 and now the NASDAQ 100 is experiencing)
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