Market correction
A market correction is a drop of roughly 10% or more in a stock index or a stock from a recent peak — a normal, recurring feature of markets.
A market correction is conventionally defined as a decline of about 10% or more from a recent high in an index or an individual stock. A deeper fall of 20% or more is usually called a bear market. Corrections are a normal and frequent part of investing — they occur regularly and most are relatively short-lived.
Corrections can be triggered by economic worries, rising interest rates, disappointing earnings, or simply a pullback after a strong run. They feel alarming but are not inherently a crisis; historically, markets have recovered from corrections over time. Trying to predict or time them precisely is notoriously difficult.
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