Nasdaq logged 66th correction this week since its inception in 1971

January 20, 2022 01:37 PM PST | By Rupam Roy

Google News:

Nasdaq logged 66th correction this week since its inception in 1971 — Image source: Poring Studio,Shutterstock

Recent News

Yum Brands Ownership Structure Russell 1000

US Foods ROCE Growth Stands Out on NYSE Composite

Matson Shows Growth Signs in S&P 500 Logistics

Institutional Strengthens Amid Broader Market S&P 500 Index

Highlights

The Nasdaq Composite logged its 66th correction this week since its launch in 1971.

The index declined 10.69% on Wednesday from its record high of 16,057.44 points on Nov 19, 2021.

On Tuesday, it closed below its 200-day moving average for the time since April 2020.

The Nasdaq Composite Index logged its 66th correction, the latest one after March 2021, on Wednesday, after it declined 10.69% from its record high of 16,057.44 points on Nov 19, 2021.

The tech-savvy index took a hit as Treasury bond yields steadily climbed over the past two months. Bond yields increase when the prices fall.

In addition, investors kept away from major purchases as rate hike fears loomed. The Federal Reserve is mulling several interest rate hikes this year to tame the high inflation. A correction happens when an index declines by 10% or more from its last peak.

Also Read: Amazon to open first physical store near Los Angeles

The Nasdaq index saw a rocky start to the new year. It fell 9.43% year-to-date.

On Wednesday, the index fell 1.15% to 14,340.26 from its last close, marking a 10.69% drop from its peak of 16,057.44 on November 19, 2021. On the previous day, it closed below its 200-day moving average for the first time since April 2020.

Also Read: Why BigCommerce Holdings (BIGC) stock rallied today?

Source: Pixabay

Also Read: Four Springs Capital Trust (FSPR) to debut on NYSE today - know details

Nasdaq’s Performance

On Wednesday, the index logged its 66th correction since its inception in 1971. In 24 of the 66 corrections, the index dropped at least 20% from its peaks and happened due to bearish market sentiments.

On March 8 last year, Nasdaq saw its 65th correction, leading to six-month subsequent gains as low equity prices provided buying opportunities to investors.

A similar uptrend was witnessed when Nasdaq fell in the correction territory in September 2020.

Also Read: Hedera (HBAR) crypto price skyrocketed 156% in a year; learn more

Following every correction, Nasdaq saw subsequent average weekly gains of 0.8% and an average 2.2% gain every three months. However, the monthly returns were weak.

Bottomline

The indices saw choppy trading this year. All the benchmark indices fell sharply on concerns over Fed's anticipated interest rate increase. The S&P 500 and Dow Jones Industrial Average fell 5.5% and 4.25%, respectively, this year as of January 19.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.