Breaking News: Nasdaq Composite and Nasdaq-100 on the Verge of Correction Territory
In a shocking turn of events, Friday’s stock-market pullback has put the tech-heavy Nasdaq Composite and the even more megacap-tech-concentrated Nasdaq-100 on track to enter correction territory, as reported by Dow Jones Market Data. This means that these indices are on the verge of falling at least 10%, but not more than 20%, from their recent highs.
The Nasdaq Composite was down more than 3% on Friday and over 5% in the last two trading sessions, hovering around 16,630. If it closes at or below 16,782.70, it would officially mark a 10% pullback from its record close of 18,647.45 set on July 10. The last time the Nasdaq Composite entered correction territory was on Oct. 25, just before a tech-led rally that saw the index surge to all-time highs.
According to Dow Jones Market Data, the Nasdaq Composite has experienced correction territory 70 times in its history, with 27 of those corrections resulting in a fall of 20% or more from the recent high. This means that there is a 38.6% chance of a further decline if history repeats itself.
In addition, the Nasdaq-100 is also down more than 10% from its recent high, trading near 18,309. For the Nasdaq-100, the correction level would be a close at or below 18,607.84.
Analysis:
This news indicates a potential shift in the market sentiment towards tech stocks, which have been driving the recent bull run. Investors should be cautious and monitor the situation closely to make informed decisions about their portfolios. A correction in these indices could have a ripple effect on the broader market, impacting overall investment strategies and financial goals. It is crucial to stay informed and seek professional advice to navigate through these uncertain times in the financial markets.