Dominic Thiem defeated Roger Federer 3-6, 6-3, 7-5 in the final while Canadian teenager Bianca Andreescu upset Angelique Kerber 6-4, 3-6, 6-4 to win the women's title at Indian Wells.
A somber Nadal announced his withdrawal a couple hours before he was scheduled to take the court at Indian Wells Tennis Garden.
Federer is on a five-matching winning streak against Nadal, who lost to him all four times they played in 2017.
Roger Federer defeated Kyle Edmund 6-1, 6-4 while Rafael Nadal got the better of Filip Krajinovic 6-3, 6-4.
Novak Djokovic lost 6-4, 6-4 to Philipp Kohlschreiber in the third-round while Naomi Osaka lost to Belinda Bencic 6-3, 6-1 in the fourth round.
Prajnesh Gunneswaran fought hard before losing 3-6, 6-7(4) to Ivo Karlovic in Indian Wells on Tuesday.
Playing his maiden singles main draw at this level, Prajnesh Gunneswaran secured a hard-fought 6-4 6(6)-7 7-6(4) victory over Nikoloz Basilashvili in two hours 32 minutes.
The fourth-seeded Stephens committed 32 unforced errors while Voegele had four aces playing in windy conditions in the Southern California desert.
Playing his maiden singles main draw at this level, the Prajnesh Gunneswaran beat the Benoit Paire 7-6 (5) 6-4 in one hour and 29 minutes.
The two-time Grand Slam champion admitted that the upcoming tournaments, including Dubai Championship, are important for her.
Williams has been eliminated in the first round only four other times, most recently at the 2012 French Open.
Argentina's Juan Martin Del Potro jumped to sixth place after he stunned Federer 6-4, 6-7 (8), 7-6 (2) to win his first Indian Wells title on Sunday.
The crowd of 18,347 at the Indian Wells Tennis Garden on Sunday seemed to sense Osaka's nervousness, something she worked hard to hide during a 6-3, 6-2 victory over Daria Kasatkina of Russia in the BNP Paribas Open final.
The win ranks right up there with Del Potro's 2009 U.S. Open title triumph, in which he beat Federer, and helping Argentina win the Davis Cup in 2016.
Sharapova's withdrawal comes after her disappointing campaign at the Indian Wells Masters this week, where she slumped to a straight-sets defeat.
Williams, who was on a brilliant run after knocking out some big names, was taken for a drive from the 20-year old as her skills exhausted the 37-year old American.
In the women's semis on Friday night, Venus Williams was to meet Daria Kasatkina of Russia and top-ranked Simona Halep of Romania faced Naomi Osaka of Japan.
Haas, also a tournament director at the Indian Wells event, has 15 career titles in his 28 final appearances, including one silver medal at the 2000 Summer Olympics.
Federer saved a handful of break points in the first game of the second set and then broke Chung twice, including on a double fault to take a 5-1 lead.
Williams has never reached the final of the desert tournament and to do she'll have to get by 20-year-old Russian Daria Kasatkina who is yet to drop a set.
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