In English, the word "nightmare" isn't used just literally for a bad dream you have at night-time, but also metaphorically to describe a very bad scenario, such as "Can Samsung recover from its Galaxy Note 7 nightmare?".
Can 悪夢 be used metaphorically? jisho.org seems to suggest it can't be, but I've seen someone translate a metaphorical use of "nightmare" using "悪夢", possibly incorrectly.