Dow Jones slides 5.5%, Nasdaq enters bear market territory

US indexes deepened their losses on Friday as investors turned to Treasury bonds, with traders assessing the risk of a potential economic recession triggered by tariffs, after China struck back with a slew of countermeasures on all US goods.

The Dow Jones Industrial Average dropped 5.5%, or 2,231 points, to settle at 38,314 points, the biggest daily loss since June 2020. It recorded a weekly loss of 7.85%.

The S&P 500 index fell 5.95%, or 322 points, to 5,074 points, with a weekly loss of 9.1%. Accordingly, the index recorded its biggest daily loss since March 2020.

Similarly, Nasdaq Composite plunged 5.8%, or 962 points, to close at 15,587 points, entering the bear market territory since 2022.

As for European markets, the STOXX Europe 600 slid 5.1% to 496.3 points.

The British FTSE index dropped 4.95% to 8,054 points, while the German DAX index dived 4.95% to 20,641 points. The French CAC 40 index lost 4.25% to 7,274 points.

The Nikkei index dropped 2.75% to 33,780 points, and the broader Topix index dipped 3.35% to 2,482 points.

Brent crude futures for June delivery fell 6.5%, or $4.56, to $65.58 per barrel. The US West Texas Intermediate (WTI) crude futures for May delivery also declined 7.4%, or $4.96, to $61.99 per barrel.    

Regarding gold, futures prices for June delivery were down 2.75%, or $86.3, to $3,035.4  per ounce.