The Pixel Watch represents Google’s vision for what a Wear OS smartwatch should be, but even in its third generation, the platform has plenty of room to grow. While the Google Pixel Watch 3 is a fan favorite among Android users, it still pales in comparison to Wear OS smartwatches from Samsung and OnePlus in key areas.

That’s why we’re looking forward to the upcoming Google Pixel Watch 4, which aims to address some of these pain points, potentially bringing the smartwatch into true flagship territory. The Pixel Watch 4 hasn’t been officially revealed yet, but early rumors and leaks give us an idea of what the next Google Watch might bring. Here’s a speculative breakdown of how the Pixel Watch 4 might improve upon the Pixel Watch 3.

Google Pixel Watch 4 vs. Pixel Watch 3: Pricing and availability

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The Google Pixel Watch 4 is expected to launch alongside the Pixel 10 series, which will debut at an August 20 event. For reference, the Pixel Watch 3 was announced on August 13, 2024, and became available as of September 10, 2024.

As for pricing, no current rumors or leaks point to a price change for the Pixel Watch 4. In fact, a recent leak suggests that the price will remain the same in Europe, which is good news. That would mean you’ll pay $349 for a 41mm watch and $399 for a 45mm watch, with optional LTE versions costing another $100 on top of that. However, these prices are unconfirmed and could certainly rise due to inflation and other supply chain factors.

The Google Pixel Watch 3 is currently available in two sizes: 41mm and 45mm, with prices starting at $349 and $399, respectively. Each size has three colorways: Matte Black and Polished Silver for both models, Champagne Gold as the 41mm exclusive, and Matte Hazel as the 45mm exclusive. The upgrade to cellular connectivity costs an extra $100.

Google Pixel Watch 4 vs. Pixel Watch 3: Design and display

Leaked Google Pixel Watch 4 renders might give us an early preview of Google’s upcoming smartwatch. Put simply, the Pixel Watch 4 appears to have a questionable design, of these renders turn out to be accurate. They depict the Pixel Watch 4 as being about 2mm thicker than its predecessor, and without rear charging pins visible.

These design changes could be divisive among Pixel Watch fans. A positive of this change is that the Pixel Watch 4 could switch back to a wireless charging puck for power, rather than the contacts and pins on the Pixel Watch 3. On the flip side, this would mean that the Pixel Watch has changed charging methods three times in four generations, which isn’t ideal for continuity.

Otherwise, the Pixel Watch 4 is expected to retain the same “waterdrop” design language as its predecessors. This time, the bezels might be even slimmer, helping make the newer model feel more modern. If the case size remains roughly the same, we could see the Pixel Watch 4 displays slightly grow compared to the 1.27- and 1.43-inch displays on the Pixel Watch 3.

The Google Pixel Watch 3 measures 12.3mm thick, so if these rumors are true, the newer model could be close to 15mm thick. That certainly isn’t great, because the current Pixel Watch 3 is actually on the thicker side of smartwatches already. The newly-announced Samsung Galaxy Watch 8 is only 8.6mm thick, and the Apple Watch Series 10 is only 9.7mm thick.

Still, there will probably be more similarities than differences between the Google Pixel Watch 4 and Pixel Watch 3. Both models will likely be offered in 41mm and 45mm sizes, and multiple colorways.

Google Pixel Watch 4 vs. Pixel Watch 3: Hardware and specs

In terms of hardware, we have been hearing rumors of a Snapdragon W5 Gen 2 processor, which hasn’t been officially announced yet but has started surfacing in rumors. That said, it seems unlikely given the timeline that it will be featured in the upcoming Pixel Watch 4.

Android Central’s own Michael Hicks interviewed Qualcomm VP of wearables Dino Bekis about Qualcomm and Google’s partnership, when he discussed the “feature-focused” and “AI-driven” Snapdragon Wear chipset coming “next year” (2025). As such, it’s still possible we see the Snapdragon W5 Gen 2 chip power the Pixel Watch 4, potentially bringing better speed, efficiency, and overall performance.

Even so, the Snapdragon W5 Gen 1 has proven quite capable, and it wouldn’t be a total loss if the Pixel Watch 4 retains this chip, as Google has been known to make the best of older chipsets in the past.

Other than that, we expect the Pixel Watch 4 to feature the same fitness and health sensors as the Pixel Watch 3. The highlight of the sensor assortment would be a multi-path optical heart rate sensor supporting ECG readings. The Pixel Watch 3 also supports blood-oxygen detection, skin temperature readings, and cEDA analysis, so those should carry over to the Pixel Watch 4 as well.

Google Pixel Watch 4 vs. Pixel Watch 3: Fitness and health features

The Google Pixel Watch 4 will most likely be powered by Wear OS 6, which brings the Material 3 Expressive design language to the smartwatch form factor. It’s a new-look operating system that will add things like more fluid scrolling, buttons, and notification cards, all of which dynamically adapt to user interaction and the Pixel Watch’s display size.

More importantly, Wear OS 6 will add proper support for third-party watch faces. The Watch Face Push API will let third-party faces sync with Pixel Watch models without needing to go through the Google Play Store, via apps like Facer.

Additionally, Gemini is replacing the Google Assistant on the Pixel Watch 4. The current Pixel Watch 3 will get all of these upgrades when Wear OS 6 rolls out, but it’s possible the Pixel Watch 4 will get some first. Additionally, the Pixel Watch 4 might offer a longer software support window.

A recent rumor suggests that Google is enhancing its strength training capabilities, featuring tools such as a workout builder and real-time guidance. This may include more advanced post-workout analysis and form insights, catering to weightlifters and bodybuilders.

Google Pixel Watch 4 vs. Pixel Watch 3: Is it worth waiting for?

Right now, there are too many unknowns to say for sure whether the Google Pixel Watch 4 will be the slam-dunk upgrade over the current Pixel Watch 3. Current rumors paint a clear picture: the Pixel Watch 4 might be better than the Pixel Watch 3 in some areas, and worse in others. Specifically, the Pixel Watch 4’s rumored thicker chassis may be a non-starter for some users — the Pixel Watch 3 was already on the thicker side of smartwatches.

With that being said, a potential chip upgrade, Wear OS 6, and slimmer bezels are just a few reasons the Pixel Watch 4 might sound incredibly appealing. That’ll be especially true if the Pixel Watch 4 indeed retains the same pricing structure as the Pixel Watch 3.

For now, we’ll have to wait for Google’s official unveiling of the Pixel Watch 4 to know exactly how the upcoming model will compare to the current one.

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As Bitcoin gradually recovers from its recent breakdown below the $100,000 mark, it appears to have triggered a fresh wave of bearish activity from investors. Its market dynamics are about to transition as key metrics such as the Funding Rates on the Binance platform have taken a negative turn.

Binance Traders Betting Against Bitcoin

In a dramatic bounce, Bitcoin has reclaimed the $105,000 price mark and is slowly approaching $106,000. While BTC has recovered, the impressive run has been met with negative sentiment, particularly from investors on Binance, the largest cryptocurrency exchange.

Darkfost, a verified author for CryptoQuant, reported that funding rates on the Binance exchange have declined sharply, signaling a shift in trader sentiment. Data from the expert reveals that the rates dropped to the -0.0033 level just as BTC swiftly bounced back since this past weekend.

This scenario implies that traders are progressively placing bets on further decline, indicating that bearish pressure is building on Binance. Negative funding rates may signal pessimism, but historically, they have also preceded short squeezes. As the price of Bitcoin navigates increased volatility and shifting momentum, this is a crucial period to observe.

According to the on-chain expert, negative financing rates suggest that most open positions are currently short as investors question whether the recent upward move is sustainable. Although this may initially appear to be negative, markets often move against the crowd, particularly when there is an overcrowded short side.

Furthermore, Darkfost has drawn attention to past scenarios, particularly in September last year. During the period, the market constantly shifted in the opposite direction whenever Binance’s funding rates fell into negative territory, whether in the short or medium term.

However, the sole exception was when new tariff policies were announced, momentarily altering market dynamics. If shorts persistently increase on the Binance platform, Darkfost is confident that these positions could eventually bolster the rally that started earlier this week.

Thus far, the expert has offered one key takeaway, stating that it is crucial to understand that the natural tendency of traders leans toward longing the market, which makes this current signal more remarkable.

BTC To Surge To A New All-Time High

After rallying earlier this week, BTC is currently facing significant resistance at the $106,500 threshold. However, this resistance level could give way soon, as Michael Van De Poppe, a market expert, has predicted a major rally to new all-time highs.

According to the expert, Bitcoin is stalling at levels below $106,500 until the next significant surge to new highs occurs. Van De Poppe believes that the anticipated move is only a matter of time, and BTC is likely to reach a new peak in July. Therefore, the expert suggests “buying the dip now is the best strategy.”

Featured image from Pixabay, chart from Tradingview.com

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Bitcoin has once again taken center stage in the crypto market. Following a market resurgence, the flagship asset rebounded above the $99,000 mark. During the sudden price recovery, a significant portion of BTC moved back into profit territory.

Millions Of Bitcoins Return To Profit

The renewed general market upsurge pushed Bitcoin’s price to key resistance levels. As the cryptocurrency stages a price rebound, Glassnode, a leading financial and on-chain data platform, has called attention to a huge portion of Bitcoin returning to profit.

At the time of Glassnode’s report, Bitcoin had gained momentum as its price soared to $97,900, marking the highest level in the past two months. The data shows that more than 3 million BTC are now back in the profit zone, following the price recovery, which provided relief to market participants.

The return of previously underwater BTC holdings into profit territory is likely to bolster investor confidence and strengthen market sentiment about the sustainability of the recent rally. Furthermore, the development could set the stage for a potential sustained upside movement to crucial levels such as the $100,000 mark.

Presently, the percentage of Bitcoin’s overall supply in profit has risen to 88%, with losses previously concentrated among buyers from the $95,000 and $100,000 range. This positive advancement in supply profitability signals an impending euphoria phase. 

After examining the supply profit oscillator, Glassnode highlighted that the metric had bounced back from its long-term mean, suggesting a broader resetting of investor expectations without a widespread surrender.

Should the percentage of supply in profit continue to increase, it might spark a major rally for BTC as investors’ engagement rises in anticipation of the upsurge. Thus, the ongoing upward move above the $99,000 threshold could be part of a larger trend.

Short-Term BTC Holders Selling In The Face Of Growing Profitability

While a significant number of BTC returning to profit is believed to trigger investors’ confidence, this is not the case for short-term holders. Alphractal, an advanced on-chain data platform, revealed a surprising trend among these investors even as the recent rebound pushes short-term holders back into profit.

According to the on-chain platform, the short-term holders’ cost basis has been hit, but these players are persistently distributing their holdings. Surprisingly, this growing selling pressure is attributed to their return to profitability, raising questions about a potential short-term pullback.

Alphractal stated that the STH Realized Price currently stands at $93,400, and Bitcoin should ideally maintain this level in the near future to prevent a fresh selling wave from happening. In the meantime, this area serves as a solid base against pullbacks, and short-term holders will probably make every effort to protect it.

At the time of writing, BTC was trading at $99,700, demonstrating a nearly 4% rise in the past week. Trading volume has also grown sharply alongside price. CoinMarketCap data shows a more than 60% rise in trading volume in the past day, reflecting bullish conviction.

Featured image from Pixabay, chart from Tradingview.com

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A trader and analyst who accurately predicted the crypto bottom in November of 2022 is warning that Bitcoin (BTC) may be on the verge of a downtrend.

In a new video, the trader pseudonymously known as DonAlt tells 66,200 subscribers of the TechnicalRoundup YouTube channel that Bitcoin remains at high risk of plummeting in value.

“But we’re still in danger territory. I don’t want to bull talk too much while we are in the area where we can get rejected easily.”

The analyst says Bitcoin may be on the verge of a collapse at current price levels, or the flagship crypto asset may surge briefly to the $90,000 level before entering a downtrend after facing resistance.

“For the bears, you can make an argument that this is as good as it gets of an area. Because, honestly, if this doesn’t get rejected here [in the mid-$80,000s], where is it going to? You can obviously hope for a wick towards $90,000, $91,000. I think that would be the only real acceptable bearish setup to take. But if you are like a convicted bear, like you have conviction in your view and you 100% don’t want to miss out like this is the best area to do it.”

However, the analyst says Bitcoin may remain in a bullish cycle and regain a six-figure value if macroeconomic conditions improve.

“I think the best course of action is a close above $90,000. Like, we start doing this, poke our head back above $90,000 favorably. Obviously, if the macro situation changes alongside with it, I think the next candle is going to be like this [to around $95,000]. And then the next candle is going to be like that [at around $102,000]. And then we’re going to trade at $110,000-$120,000.

So basically, the moment we get back above $90,000, there’s a decent setup, stop loss down here [at $77,000], entry somewhere there [at around $90,000], and then the target above $110,000 into maybe $120,000-$130,000. That’s kind of the best setup that I see for the bulls.”

Bitcoin is trading for $82,788 at time of writing, down 2.1% in the last 24 hours.

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Onchain Labs is a new initiative set up to support decentralized applications (dApps) developed by Offchain Labs on Layer 2 network Arbitrum. Launched in partnership with The Arbitrum Foundation, this program provides practical assistance on everything from product development to marketing for teams that choose Arbitrum’s speedy, cost-effective infrastructure. Specifically, Onchain Labs focuses on supporting innovative and experimental projects.

How Onchain Labs Works, Early Support, and Product Direction

Offchain Labs, the developers behind Arbitrum, introduced its first optimistic rollup solution in 2021. Since then, it has added features like Arbitrum Orbit—allowing anyone to create their own chains—and Stylus, which expands coding options from Solidity to include Rust. These tools aim to simplify the process of building and operating dApps, benefiting areas such as decentralized finance (DeFi) and Web3 gaming.

By teaming up with Onchain Labs, developers can tap into Offchain Labs’ expertise while staying in control of their own projects. Rather than building every application internally, Offchain Labs partners with emerging teams that bring unique ideas to the Arbitrum ecosystem. In return, Onchain Labs offers pointers on product fundamentals and user outreach, helping projects handle tricky infrastructure challenges more efficiently.

Arbitrum is well-regarded for its block processing speed—around 100 to 250 milliseconds—which is helpful for dApps that need quick interactions. Developers also value Arbitrum’s compatibility with Solidity, plus Rust support through Stylus. This approach makes it easier for existing Ethereum projects to switch over while giving new developers the option to benefit from Rust’s performance perks.

Source Onchain Labs

Fair and Inclusive Launches, Risk Factors, and Building Trust

One of the primary goals of Onchain Labs is promoting fair and inclusive project launches. In some blockchain communities, a small group of people end up capturing the majority of the rewards, discouraging broader participation. Onchain Labs emphasizes a commitment to equitable and community-aligned launches, contrasting with extractive zero-sum models.

Of course, any new blockchain venture carries risks, particularly with experimental ideas. Onchain Labs urges anyone thinking about joining to do thorough research (DYOR) before committing or acquiring tokens associated with these initiatives. While it helps with product development and promotional strategies, Tandem—Offchain Labs’ related venture studio—may or may not buy tokens through public channels.

Improvements on Arbitrum have made it simpler to launch projects that might be harder elsewhere. By combining speedy, affordable transactions with a fair launch mindset, Onchain Labs wants to attract both builders and users who appreciate a setting where rewards are distributed more widely.

Looking Ahead, Developer Involvement, and Ecosystem Growth

The first project of Onchain Labs is expected to emerge out of stealth mode in the near future. Could it be new DeFi ideas, accessible NFT markets, or game platforms that rely on quick confirmations? Whatever it might be, Onchain Labs believes that engaging developer input earlier on leads to better products and a better community.

Parties looking to participate may put forth proposals for what they aim to accomplish, what they require from a technical perspective, and their fair-launch strategies. Successful applicants are granted insight into products, potential partnerships, and advice regarding user acquisition—leveraging Arbitrum’s battle-tested functionality. This group-focused model matches a growing push in blockchain to pair strong tech foundations with open, community-oriented principles.

Although there’s no guarantee that dApps will achieve long-term success, Onchain Labs provides hands-on knowledge that can help promising projects move forward. Because Arbitrum can handle higher traffic at lower costs, it might appeal to both established teams looking to expand and newcomers looking for a welcoming place to build.

In the next phase of Arbitrum’s growth, Onchain Labs will build on-chain services that invite a large range of participants. With an eye on fair launches and prudent decision-making on what to build, it could be a model that others will follow, showing how better performance is possible alongside community values.

The Nasdaq index is now in correction territory, meaning it is now more than 10% down from its all-time high. While this may seem like a big deal, 10% corrections tend to occur just about every year, so this is something that investors must understand happens quite frequently.

Because this happens regularly, investors shouldn’t panic; instead, it’s time to start looking for bargains that could be even more heavily hit than the broader market. My biggest value to buy right now is Nvidia (NVDA 6.24%), one of the best artificial intelligence (AI) stocks out there. At this writing, it’s down nearly 30% from its all-time high and looks like a dirt-cheap bargain.

Nvidia’s stock is going through the biggest drawdown during its multiyear run

Nvidia makes graphics processing units (GPUs), which are used for arduous computing tasks. Because they can process multiple calculations in parallel, they are well suited for tasks like AI training. While there are other competitors in the GPU space, Nvidia’s options are superior in multiple ways, and it has become the clear pick in this space.

With companies investing billions in their AI infrastructure, Nvidia has become the primary beneficiary of this spending, which has caused its stock to rocket higher over the past few years. At its peak, Nvidia’s stock was up 922% since the start of 2023. That’s an incredible run, and it’s one of the main reasons why the stock is being sold off so aggressively. Investors want to take profits before they disappear, so this sell-off disproportionately affects Nvidia. However, plenty of tailwinds are pushing Nvidia higher, and investors need to take advantage of the biggest sell-off the stock has seen since its run began in 2023.

NVDA data by YCharts

Nvidia will be all right even if the market has its doubts

2025 is slated to be a record year of capital expenditures from many of the big tech companies. The vast majority of this expense is going toward building out AI computing capacity, which will benefit Nvidia. Furthermore, Nvidia’s latest chip architecture, Blackwell, is starting to become more widely available, which means some clients may be upgrading their existing GPUs with more advanced versions.

These are all positive effects for Nvidia’s stock, and they add to Wall Street’s projection that Nvidia’s revenue will rise 56% to $204 billion this year. However, the big caveat here is that it will require big tech companies to continue spending a lot of money to reach that projection. The fear is that economic weakness brought on by trade wars could cause these AI hyperscalers to cut their spending, which would harm Nvidia.

However, I don’t see that playing out, as each company competes to establish AI supremacy. If they see a competitor get worried about economic conditions and cut spending, it may encourage them to continue their spending levels to gain ground. Many of these companies have massive cash flows and huge cash piles, so it is also not a big deal to continue spending like this.

While it may concern some investors in the short term, it’s in every company’s best interest to continue investing in AI resources over the long term, which will benefit Nvidia.

As a result, I think Nvidia’s stock is still a buy here, especially given its current price tag.

The stock looks like a great deal right now

During Nvidia’s run, the stock has seldom been considered cheap. However, I think we’ve reached that point, as it now trades for 36 times trailing earnings and 24 times forward earnings.

NVDA PE Ratio data by YCharts

That’s the cheapest Nvidia has been in some time, and I think investors need to take advantage of it while it is fairly cheap. I’m not sure when this sell-off will end, but I know that Nvidia will emerge relatively unscathed on the other side (at least from a business perspective) due to the massive AI investments that are occurring.

I think Nvidia is a fantastic stock to buy here, but I wouldn’t be surprised if the market continues to decline until some positive headlines pull it out of the decline.

With the Nasdaq Composite (^IXIC -4.00%) moving into correction territory (down at least 10% from an all-time high), several of its constituent stocks are suddenly a lot more attractively priced than they were to start the year. While investors never like to see markets pull back into correction territory, it does present a great buying opportunity for some great companies caught up in the sell-off.

Let’s look at two quality stocks you can buy on this market dip and hold forever.

1. Alphabet

With the market pullback, Alphabet (GOOGL -4.49%) (GOOG -4.41%) finds its shares down about 20% (as of this writing) from its all-time highs set in early February. The dip in price brings its stock down to a very attractive valuation of a forward price-to-earnings ratio (P/E) of 18.5. That’s not expensive for a company with the set of businesses that Alphabet owns.

While best known for its search business Google, Alphabet is actually a whole lot more. It is the world’s leading digital advertising company, where it connects advertisers with consumers through both its own properties as well as third-party sites. Google is the largest digital advertising platform in the world, while its YouTube platform is the world’s fourth-largest. In between are Meta Platforms‘ social media apps, such as Facebook and Instagram, and Amazon, which serves up sponsored ads for third-party products sold on its site.

Alphabet is betting heavily on artificial intelligence (AI), which it is using to improve its search results and to create AI Overviews to quickly give users answers to their questions. Historically, the company has only served ads on about 20% of its search queries, so its AI Overviews are a strong potential source of growth as eventually, it should be able to monetize them through new ad formats. The company has a huge network of advertisers and search history, so all the ingredients are there to profit from AI Overviews.

At the same time, the company’s newest Gemini 2.0 model is improving and catching up to the competition. It has its own Gemini app, while Gemini is also being incorporated throughout Alphabet’s businesses. This is helping the company become a leader in multimodal search (such as visual search), while its Veo 2 text-to-image video generator has risen above the competition.

Alphabet also owns the third-largest cloud computing business with Google Cloud, which is helping customers build out their own AI models and applications. The unit grew revenue by 30% last quarter and segment income by 142%. The unit has seen a profitability inflection point now that it has reached sufficient scale. The company has also developed its own custom AI chip with the help of Broadcom, which it says is leading to faster inference times and lower costs. This should help the business continue to see margin improvements.

Alphabet is also a leader in two emerging technologies: quantum computing and autonomous driving. Its Willow chip recently made a big breakthrough in solving an issue that has hampered quantum computing, while its Waymo unit is the only company offering paid robotaxi rides in the U.S.

Take this all together, and Alphabet is a great buy at current levels.

Image source: Getty Images.

2. Microsoft

Like Alphabet, while Microsoft (MSFT -3.34%) is known for its software Office 365 productivity tools, such as Word, Excel, and PowerPoint, it is also a whole lot more. It owns the second-largest cloud computing business in the world and the Windows PC operating system. In addition, it operates the professional development website LinkedIn, software development platform GitHub, AI voice platform Nuance, and the Xbox video gaming platform as well as video game studios such as Activision Blizzard, among other businesses.

Microsoft has proven to be adaptable over the years, driving growth by transitioning from a traditional software licensing model to offering its productivity software programs through its Office 365 subscription model. More recently, the company has been one of the early leaders in AI through a large investment and partnership in OpenAI.

The biggest beneficiary of its embrace of AI has been its cloud computing unit, Azure, which grew its revenue by 31% last quarter. Similar to Google Cloud, customers are flocking to Azure to help them build out their own AI models and applications. Last quarter, Azure AI revenue soared 157% year over year. Meanwhile, it said this is leading to robust adoption of its SQL Hyperscale and Cosmos DB solutions.

Microsoft’s biggest AI opportunity, however, may lie in its Microsoft 365 AI copilots, which are AI assistants that help users save time and more easily complete tasks. Copilots can do such things as prioritize Outlook email messages, summarize a Word document, or help draft a PowerPoint presentation through natural language. They have also started to be able to help with more complex tasks, such as being able to use the Python programming language in Excel using only natural language prompts.

At the cost of $30 per enterprise user per month, on top of the Microsoft 365 subscription, this is a big potential growth opportunity for Microsoft. If these Copilots can prove to save time and money, they will eventually see high levels of adoption.

Following the market’s pullback, the stock trades at a forward P/E of 25 times based on analyst estimates for fiscal year 2026 (ending in June 2026). That’s a reasonable valuation for a leading tech company that has a large recurring nature business and a history of adaptability. As such, this is a great time to look to establish a position in the stock.

The U.S. stock market has stumbled in recent weeks as the Trump administration imposed tariffs on goods imported from Canada, China, and Mexico, potentially starting a trade war. The market has been especially volatile because the White House has wavered on its trade policy, first imposing duties and then delaying or changing the terms.

The market dislikes uncertainty. The three major U.S. stock indexes are down more than 5% from their highs as of March 6: The S&P 500 (^GSPC 0.25%) has slipped 6.6%, the Dow Jones Industrial Average (^DJI -0.18%) has declined 5.4%, and the Nasdaq Composite (^IXIC 0.18%) has tumbled 10.4%.

Importantly, the Nasdaq has officially entered market correction territory, meaning it has fallen at least 10% from its most recent bull market high. Fortunately, the index has historically bounced back very quickly. While there are no guarantees, here’s what usually happens next.

The Nasdaq Composite has historically rebounded quickly after closing in correction territory

The Nasdaq Composite measures the performance of more than 3,000 companies listed on the Nasdaq stock exchange. The index is most heavily weighted toward the information technology and consumer discretionary sectors, and is commonly regarded as a benchmark for growth stocks.

As mentioned, the Nasdaq on March 6 closed more than 10% below its most recent bull market high of 20,174, a level the index reached less than three months earlier on Dec. 16. That means the Nasdaq has entered a stock market correction, something it has done a dozen other times since 2010.

The chart below lists each date since 2010 when the Nasdaq first closed in correction territory. It also shows how the index performed over the next 12 months.

Data source: YCharts. A full year has not yet elapsed since the Nasdaq closed in correction territory on Aug. 2, 2024.

Since 2010, the Nasdaq has returned an average of 21% during the 12-month period following its first close in correction territory. Comparatively, the index has returned 15% annually over the entire period. That means the Nasdaq has historically produced above average returns following its first close in a market correction.

Importantly, past performance is no guarantee of future results. But we can use the information above to make an educated guess about how the Nasdaq might perform in the next year. Specifically, the index closed at 18,069 on March 6, so it would advance 21% to 21,863 in the next year if its performance aligns with the historical average.

Image source: Getty Images.

The Nasdaq Composite may continue to fall due to uncertainty about trade policy

The tariffs proposed by the Trump administration as of Feb. 27 would increase the average tax on U.S. imports to 13.8%, according to one estimate, the highest level since 1939. Several duties have already taken effect, rattling the stock market. Businesses can either absorb the cost increases or pass them to buyers. Margins fall in the first scenario, and sales likely fall in the second scenario. Either way, tariffs probably hurt corporate earnings.

However, investors are particularly nervous because the Trump administration has waffled back and forth on its trade policy. It planned to impose tariffs on goods from China, Canada, and Mexico on Feb. 4, but delayed duties on Canadian and Mexican imports until March 4. The administration then adjusted the terms on March 6, such that goods in compliance with the free trade agreement are exempt until April 2.

That whipsawing on trade policy has created uncertainty, and the stock market will likely remain volatile until that uncertainty dissipates. But investors can take solace in this indisputable fact: The Nasdaq Composite has recovered from every correction and there is no reason to believe this one will be different. That means the current drawdown is a buying opportunity.