Economic recession risks are rising! Tech stocks are in a bear market, small-cap stocks and blue-chip stocks are also difficult to escape.

The US stock market experienced intense selling again on Friday, with the tech-heavy Nasdaq Composite Index dropping nearly 6%, officially entering bear market territory. Investors are deeply concerned about the trade war sparked by President Trump's massive tariffs and its impact on global economic growth. The Nasdaq Composite Index plummeted 962.82 points on Friday, a decrease of 5.82%, closing at 15,587.79 points. According to Dow Jones market data, this is the first time the index has officially entered a bear market since 2022 - typically defined as a drop of over 20% from recent highs. The current key concern for investors is how long the "winter" for tech stocks will last. Historical data shows that since 1973, the average duration of a bear market for the Nasdaq is approximately 111 trading days (around five months). The last bear market occurred from August 15 to December 28, 2022, during which the index fell by over 22%. However, Dow Jones data shows that tech stocks typically show resilience in the early stages of a bear market: the Nasdaq averages a 1.3% increase in the 30 days after entering a bear market, a 7.1% increase in three months, and a higher average increase of 12.9% after one year. This means that while the current market volatility is unsettling, historical experience suggests it may also harbor new opportunities for a rebound. The direct cause of this recent US stock market plunge is China's announcement of a 34% tariff on all American products in response to the Trump administration's earlier imposition of equivalent tariffs on Chinese products this week. This move has sparked strong concerns in the market about the escalation of a full-blown US-China trade war. Despite a strong March nonfarm payrolls report in the US - with 228,000 new jobs added, far exceeding expectations - this data has not calmed market sentiment. On the contrary, the slight increase in the unemployment rate to 4.2% has signaled confusion in the economy. Federal Reserve Chairman Powell stated that the Fed currently has no immediate need to make a monetary policy response to tariffs, but also warned that the high inflation brought about by trade policy "may not be temporary". This week's market sell-off is not limited to the tech sector; small-cap stocks and large blue-chip stocks have also been hit hard. Small-cap stocks, once seen as the "biggest winners" of the Trump administration policies, have also entered bear market territory. The benchmark Russell 2000 index has dropped nearly 22% since its peak in November last year, dropping by 4.4% on Friday to close at 1,827.03 points. Dow Jones data shows that since 1987, the Russell 2000 typically drops around 1.9% in the week after entering a bear market, but then averages a 6.8% increase in the following three months and a nearly 12% increase in six months. At the same time, the S&P 500 index dropped nearly 6% on Friday, closing at 5,074.08 points, not far from confirming entry into bear market territory (below 4,915.32 points). The Dow Jones Industrial Average also fell 5.5% to close at 38,314.86 points, officially entering correction territory (a drop of 10% or more from recent highs).