Nasdaq Approaches Bear Territory Amid Escalating Trade Tensions

Market Decline: The Nasdaq Composite has fallen 20% from its December record high, approaching bear market territory. The S&P 500 and Dow Jones Industrial Average have also experienced significant drops, marking their steepest weekly declines since March 2020. ​


Trade Tensions: The downturn is largely attributed to escalating trade tensions. The U.S. imposed a 10% tariff on most imports, prompting China to retaliate with a 34% tariff on all U.S. goods, effective April 10. This escalation has heightened fears of a global trade war.


Recession Concerns: In response to these developments, J.P. Morgan has increased the probability of a global recession to 60%, up from 40% previously. ​

Market Movements:

Support Levels and Potential Retracement: The Nasdaq's 20% decline suggests it's testing critical support levels. While technical analysis might indicate a potential for a short-term retracement or consolidation at these levels, the prevailing market sentiment, driven by ongoing trade disputes and recession fears, could limit any substantial recovery.​

Outlook: Given the current geopolitical and economic climate, a continued downward trend is plausible. However, markets are inherently volatile, and any developments in trade negotiations or economic policies could influence future movements.​

Disclaimer: Please remember that market predictions are speculative. It's essential to conduct thorough research and consult with financial advisors before making investment decisions.