Nasdaq set to confirm bear market as Trump tariffs trigger recession fears

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Nasdaq set to confirm bear market as Trump tariffs trigger recession fears

, Reuters - 9:33 AM ET 4/4/2025 US Markets

April 3 (Reuters) -

The tech-heavy Nasdaq Composite index was set to confirm it was in a bear market on Friday, down more than 20% from a recent record high, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.

Trump on April 2 slapped a 10% baseline tariff on all imports to the United States along with heavy levies on tech production hubs such as China, Taiwan and Vietnam, deepening a selloff triggered by concerns about AI spending that had pushed Nasdaq into correction territory earlier last month.

The index fell 2.8% on Friday, after China announced additional tariffs of 34% on U.S. goods in the most serious escalation.

The Nasdaq Composite index slumped about 20% from its December 16 record closing high of 20,173.89. A bear market is confirmed when an index closes down at least 20% from its most recent record high finish, according to a widely used definition. (Reporting by Sukriti Gupta in Bengaluru; Editing by Sriraj Kalluvila)

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