In a stunning turn of events, the Nasdaq Composite has completely cratered and is now down over 13% since Feb. 18 (as of this writing). The culprit has been a combination of U.S. President Donald Trump's tariffs and weak economic data that could be pointing to a recession, or perhaps stagflation.
The Nasdaq has entered a correction. A stock market correction means a decline of between 10% and 20% from all-time highs (a 20% decline officially triggers a bear market).
It's been a rough past four weeks for investors. All told, the Nasdaq Composite is now down 12% from its mid-February high.
Investors are experiencing the first big stock market sell-off of 2025. I have no idea -- and neither does anyone else -- when this drawdown will end or when another one will occur.
The Nasdaq index is now in correction territory, meaning it is now more than 10% down from its all-time high. While this may seem like a big deal, 10% corrections tend to occur just about every year, so this is something that investors must understand happens quite frequently.
In just a matter of weeks, tech stocks have gone from stretching to all-time highs to plunging on concerns around tariffs and even a recession.
After peaking on Dec. 16, the Nasdaq Composite -- which tracks almost every stock trading on the Nasdaq stock exchange -- has entered into a correction. The index is down around 9% year to date and 13% from its December peak.
Following the stock market's record-breaking run last year, the start of 2025 offers a timely reminder that risk and price volatility are normal parts of the investing process.
The 4% drop in the Nasdaq Composite Index (^IXIC 0.19%) on March 10 served as a wake-up call to investors. While that was not a record drop by any measure, it was the worst one-day decline since the fall of 2022, meaning many newer investors had never experienced a comparable decline.
Technology stocks are continuing to lead the market higher, buoying the Nasdaq Composite and S&P 500 while the Dow Jones Industrial Average has slipped into the red.
Nvidia (NVDA 5.20%) stock has been a fantastic medium- and long-term winner and even a winner over the last year. But shares of the artificial intelligence (AI) chip and technology leader have been having a tough time recently.
In recent trading sessions, Wall Street witnessed a bloodbath, with the “Magnificent Seven” stocks dragging the Nasdaq lower. Yet, it's still wise to have faith in three of them.