U.S. stocks are close to bear-market territory. What history says happens next.

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The Tell

The Dow Jones Industrial Average enters correction territory, and the S&P 500 teeters on the edge of a bear market

Last Updated: April 4, 2025 at 4:42 p.m. ET

First Published: April 4, 2025 at 3:43 p.m. ET

The stock-market selloff picked up steam on Friday, pushing the tech-heavy Nasdaq Composite into bear-market territory amid fears that President Donald Trump’s sweeping tariffs have ignited a trade war that will lead to a global economic slowdown.

The Nasdaq Composite COMP on Friday fell 962.82 points, or 5.8%, to end at 15,587.79. The index has now officially entered a bear market for the first time since 2022, according to Dow Jones Market Data. 

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