The U.S. stock market endured its most challenging week since 2020, with the Nasdaq Composite Index officially entering bear market territory. On Friday, April 4, 2025, all three major stock indices closed sharply lower:

S&P 500 Index: Dropped 6%, marking its largest single-day decline since March 2020. Over the week, it fell 9.08%, the steepest weekly drop since March 2020.

Nasdaq Composite Index: Decreased by 5.8%, closing more than 20% below its all-time high, confirming its entry into a bear market.

Dow Jones Industrial Average: Declined by 5.5%, closing over 10% below its all-time high, indicating a move into correction territory.

These significant declines were triggered by escalating trade tensions, particularly China's imposition of a 34% retaliatory tariff on U.S. imports in response to President Trump's tariff hikes.

The market turmoil reflects investor concerns over a potential trade-driven recession and underscores the heightened volatility in the financial markets.