The Nasdaq Just Hit Correction Territory. History Says The Stock Market Will Do This Next (Hint: It May Surprise You)
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 (SNPINDEX: ^GSPC) has slipped 6.6%, the Dow Jones Industrial Average (DJINDICES: ^DJI) has declined 5.4%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) 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.Continue reading
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 (SNPINDEX: ^GSPC) has slipped 6.6%, the Dow Jones Industrial Average (DJINDICES: ^DJI) has declined 5.4%, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) 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.
