The Nasdaq Composite (^IXIC 2.96%) is officially in a bear market. While it had been floating around in correction territory for a few weeks, it fell more than 20% below its all-time high after President Donald Trump announced his new tariff plan on April 2. Trump announced new tariffs on more than 180 countries, with the amounts varying from 10% to 99%.
Some of the more noteworthy tariffs were put on imports from countries like China, Taiwan, and Vietnam, which many tech companies rely on. That’s why investors have grown extra cautious of the tariffs’ effects, and the tech-heavy Nasdaq Composite has experienced harsher drops than other major indexes like the S&P 500 (^GSPC 2.63%) and Dow Jones (^DJI 2.61%).
Although stock market crashes are nerve-wracking, the silver lining is that history shows that investors shouldn’t go into full-blown panic mode. Let’s take a look at why.
