Nasdaq confirms it is in bear market, ending more than 20% below record close

(Reuters) -The tech-heavy Nasdaq Composite index confirmed on Friday that it is in a bear market, after a 22.7% fall from its Dec. 16 record close, as investors fled riskier assets on fears that tariffs imposed by President Donald Trump could spark a trade war and tip the global economy into recession.

The index ended down 5.8% on Friday, after China announced additional tariffs of 34% on U.S. goods in retaliation for steep tariffs Trump announced against China on Wednesday.

The Nasdaq Composite index ended down 962.82 points at 15,587.79, versus its December record close of 20,173.89.

A bear market is confirmed when an index closes down at least 20% from its most recent record high finish, according to a widely used definition.

Along with the S&P 500 and the Dow Jones Industrial Average, the Nasdaq also on Friday marked its deepest two day selloff since March 2020, at the height of the COVID-19 pandemic.

The Dow confirmed on Friday that it was in a correction and the S&P 500 ended the session more than 17% below its record closing high.

The Nasdaq’s biggest drag from individual stocks came from heavyweight Apple, which ended down 7.3%, and Nvidia, which also fell more than 7%.

(Reporting By Sinéad Carew in New York, Sukriti Gupta in Bengaluru Editing by Franklin Paul and Deepa Babington)