The US stock market is facing a rough patch in 2025, with NASDAQ 100 currently down -19.3%. Major indices like the US30 (Dow Jones) and NASDAQ 100 are struggling under pressure due to rate hike fears, geopolitical tensions, and market uncertainty.
But is this just a dip—or the beginning of something bigger?
Let’s look back at NASDAQ 100’s annual returns since 1999:
| Year | Performance |
|---|---|
| 1999 | +79% 🟢 |
| 2000 | -36.1% 🔴 |
| 2001 | -33.4% 🔴 |
| 2002 | -37.4% 🔴 |
| 2003 | +49.7% 🟢 |
| 2004 | +10.5% 🟢 |
| 2005 | +1.6% 🟢 |
| 2006 | +7.1% 🟢 |
| 2007 | +19% 🟢 |
| 2008 | -41.7% 🔴 |
| 2009 | +54.7% 🟢 |
| 2010 | +19.9% 🟢 |
| 2011 | +3.4% 🟢 |
| 2012 | +18.1% 🟢 |
| 2013 | +36.6% 🟢 |
| 2014 | +19.2% 🟢 |
| 2015 | +9.5% 🟢 |
| 2016 | +7.1% 🟢 |
| 2017 | +32.7% 🟢 |
| 2018 | -0.1% 🔴 |
| 2019 | +39% 🟢 |
| 2020 | +48.6% 🟢 |
| 2021 | +27.4% 🟢 |
| 2022 | -32.6% 🔴 |
| 2023 | +54.9% 🟢 |
| 2024 | +25.6% 🟢 |
| 2025 (So far)* | -19.3% 🔴 |
This isn’t the first time we’ve seen red candles on the charts. The early 2000s tech bubble and the 2008 financial crisis saw similar declines—followed by major rebounds.ave?
Key Reasons Behind the Downturn:
1️⃣ Trump’s Tariff Shock:
Since Trump returning to the political spotlight, investors are pricing in potential trade wars, especially with proposed tariffs on Chinese goods and threats toward European auto imports. Uncertainty is hitting global sentiment.
2️⃣ Rising Interest Rates:
The Federal Reserve’s hawkish tone and signals of further rate hikes are scaring off growth investors. Higher rates mean tighter liquidity—and tech stocks are often the first to suffer.
3️⃣ Global Slowdown:
From China’s sluggish recovery to Europe’s stagnation, global demand is under pressure. U.S. companies with international exposure are feeling the heat.
4️⃣ Middle East Tensions:
Ongoing instability in oil-producing regions is pushing energy prices up, raising inflation concerns again—exactly what the Fed doesn’t want.
5️⃣ Overstretched Tech Valuations:
After a monster rally in 2023 (+54.9% for NASDAQ 100), many tech giants were priced for perfection. Now? Investors are rebalancing and profit-taking is in full swing.
What Traders Need to Know:
- Volatility = Opportunity: While the market is shaky, these drops often create golden entries for long-term investors and skilled short-term traders.
- Stick to Your Strategy: Use proper risk management, and don’t let panic drive your trades.
- Stay Informed: Economic data, Fed announcements, and earnings reports will shape the next moves.
Will history repeat, or is this the reset before another massive rally?
Only time will tell, but one thing is clear—volatility is back.
Stay tuned with us for real-time updates and market insights.
