In early 2025, the Nasdaq 100 index faced a turbulent period, officially entering a bear market with a staggering 6% single-day drop on April 4—the largest since March 2020. This plunge erased $11 trillion in U.S. stock market value since mid-February, with recession odds climbing above 60%. Investors watched in dismay as the tech-heavy index fell 20% from its prior record, signaling a bear market that rattled even seasoned traders. Yet, by mid-May, the Nasdaq had staged a stunning recovery after declining 25%, surging over 20% from its April 7 low on its way back towards all-time highs, driven by a resurgence in big tech stocks and, at the time, what appeared to be a US-China trade truce. This rapid rebound underscores a critical lesson: markets are unpredictable, and having a strategy, not guessing, is the key to navigating their volatility.
