The Nasdaq Composite Index has registered its 66th correction (a drop of 10 per cent or more from a recent peak) since its inception 50 years ago.

How has the index fared after those occurrences?

We’ve got answers.


by Mark DeCambre, MarketWatch

The Nasdaq Composite Index on Wednesday booked its first close in correction territory since March.

A rapid surge in Treasury yields and expectations for interest-rate increases from the Federal Reserve are being blamed for weakness in the formerly highflying benchmark.

The technology-heavy index is off to a terrible start (if you’re long the market) in 2022, closing Wednesday down 1.2% at 14,340.26, putting it lower 10.69% since its Nov. 19 peak, meeting the common definition for a correction in an asset’s value.

The benchmark finished below its 200-day moving average for the first time since April 2020 on Tuesday.

The Nasdaq has registered a correction 65 times (not including Wednesday’s) since it was launched in 1971, and of those corrections, 24 of them, or 37%, have resulted in bear markets, or declines of at least 20% from a recent peak, according to Dow Jones Market Data.

More recently, corrections have served as buying opportunities, with the sojourn into correction territory on March 8 resulting in subsequent gains for the one-week, two-week, three week and one-month periods, going all the way out to six months.

A similar uptrend took hold when the Nasdaq Composite slipped into correction territory in early September 2020.

What happens next is unclear but here’s a list of Nasdaq corrections during the 2000s, and what happened after that: