The Data Point: What’s a stock market correction?

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The stock market has been bumpy in January, causing Google searches to spike for the term “market correction.” So what is a market correction, and is it the same as a market crash?

So what is a market correction, and is it the same as a market crash?

A correction is not the same thing as a crash, which is a sudden, steep drop in prices. Although it’s possible for prices to crash into correction territory. Index values can swing throughout the day, so an index isn’t considered “in a correction” unless its final closing value for the day is below the 10 percent threshold. This is why the market isn’t yet in a correction, even though the S&P 500 dipped below the level briefly Monday before rebounding.Oil prices fell into correction territory in 2018

 

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Why are you not mentioning the current correction in the NASDAQ.?

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