Stocks Plummet Amid Tariff Crisis, Nasdaq Enters Bear Market

U.S. stock markets continued to plunge amid escalating trade tensions following President Trump's recent tariff announcements, with the S&P 500 and Nasdaq entering correction territory and the Russell 2000 officially in a bear market. On Thursday, the S&P 500 dropped 4.8%, marking its worst day since 2020, while the Dow and Nasdaq also saw significant declines of 4% and 6%, respectively. China's response included imposing a 34% retaliatory tariff on U.S. imports, which further exacerbated investor fears and led to expectations of a recession by 2025. The current market conditions reflect a severe bearish sentiment, with analysts predicting multiple interest rate cuts by the Federal Reserve as a response to the economic downturn. The market has violated several key support levels, indicating substantial technical damage and raising concerns about future performance. Overall, the current volatility highlights a rapidly deteriorating economic outlook amid trade disputes.