Following a sharp decline on March 26, the NASDAQ index closed down approximately 10.9% from its all-time high of October 2025. This downturn has been attributed to a combination of high valuations, rising oil prices, and geopolitical tensions.
Historically, corrections are relatively short-lived compared to bull or bear markets. Past correction experience includes:
- Time to Bottom: On average, about 4 months for a correction to reach its lowest point.
- Time to Recovery: about 8 to 11 months for the market to return to its previous record highs.
While the NASDAQ is the first major index to experience a correction in 2026, the S&P 500 and Dow Jones are also currently experiencing significant pullbacks. These indices have not yet fallen into 10% correction territory as of this writing.
