Major U.S. stock indexes have dropped between 6% and 13% in January, through Wednesday, with some investor favorites during the pandemic—including Covid-19 vaccine maker Moderna Inc., Peloton Interactive Inc. and Netflix Inc.
—falling around two or three times as much. Wall Street’s fear gauge, the Cboe Volatility Index of expected market swings, has nearly doubled this year. Some well-known hedge funds are down 10% or more, said people familiar with the results.
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The Data Point: What’s a stock market correction?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? Why are you not mentioning the current correction in the NASDAQ.?
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