Nasdaq, A Mostly Tech Stock Exchange, Officially Enters Bear Market

NASDAQ MarketSite TV studioLuis Villa del Campo / CC-BY-2.0 / Flickr

In an ominous development, Nasdaq has not been in a bear market (meaning a market in decline) since the Great Recession.

In what is proving to be the stock market’s worst December in a decade, the Nasdaq is entering its first bear market since the Great Recession, according to CNN Business.

CNN reported that the Nasdaq fell 8.4% this past week, which is considered its worst since November of 2008. Additionally, technology stocks including Facebook, Apply, and Twitter fell on Friday around concerns for trade relations between the United States and China.

Investors are worried about the prospect of a global economic slowdown. Political chaos from Brexit, a looming US government shutdown and the resignation of US Defense Secretary James Mattis are stoking fear, too. And the Federal Reserve added to those concerns this week by signaling that its rate-increase plan will continue into 2019 despite downgrading its economic growth forecast.

Although President John Williams of the New York Federal Reserve made optimistic claims about the market going into the new year, the investors are still fearing a decline in economic growth surrounding the events in Washington and around the world.

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