Nasdaq confirms it is in bear market, ending more than 20% below record close
1. Nasdaq enters bear market, falling 22.7% from record highs. 2. Investor fears of a trade war may negatively impact S&P 500.
FAQ
Why Bearish?
Historically, significant declines in tech sectors lead to broader S&P 500 downturns. The Nasdaq's bear market raises concerns about investor sentiment and economic health, which can adversely affect S&P 500 valuations.
How important is it?
The decline of the Nasdaq due to trade war fears suggests increased risk aversion, which can influence S&P 500 major sectors.
Why Short Term?
Immediate fears surrounding the trade war can cause volatility. Previous instances, like the 2018 trade tensions, impacted the S&P 500 swiftly.