U.S. Stocks Log Worst Week in 5 Years, Nasdaq Enters Bear Market

In Brief:

Nasdaq drops over 20% from its peak, entering a technical bear market.

S&P 500 suffers nearly 6% single-day loss, worst since March 2020.

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U.S. stock markets closed out their worst-performing week in half a decade as macroeconomic tensions, trade policy shocks, and rising interest rate fears triggered a widespread selloff.

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On April 5 (ET), the Nasdaq plummeted 5.82% on the day, officially entering a technical bear market after falling more than 20% from its historical high. The S&P 500 dropped 5.97%, marking its steepest single-day loss since the COVID-induced crash in March 2020. Over the course of the week, the index declined 9.08%—its worst weekly performance in five years.

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The Dow Jones Industrial Average was not spared either, tumbling 5.50% on Friday and ending the week more than 10% below its all-time high, thus confirming its entry into a technical correction phase.

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This massive selloff follows escalating global trade tensions, triggered by U.S. President Donald Trump’s aggressive tariff announcements and renewed fears of a global economic slowdown. With inflation concerns still lingering and hopes of rate cuts uncertain, investor sentiment remains fragile heading into Q2.

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