Q&A: What it means that stocks are in a 'correction' [MSN Money]
S&P Global Inc. (SPGI)
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Source: MSN Money
NEW YORK — The stock market's steep decline the past week has pushed the Dow Jones industrial average and the Standard & Poor's 500 index into what is known as correction territory. Popular Searches AdChoices Here are some common questions asked about corrections and what they mean to average investors: ___ WHAT IS A STOCK MARKET CORRECTION? A correction is a Wall Street term for when an index like the Dow industrials or the Nasdaq — or an individual stock — falls 10 percent from its most-recent high. The Dow fell 1,032.89 points Thursday to 23,860.46, which is 10.4 percent below its record close of 26,616.71 set on January 26. A correction is not the same as a bear market, which is defined as when a stock index or individual stock falls 20 percent from its most-recent peak. ___ IS THE ENTIRE STOCK MARKET IN A CORRECTION? Two of the U.S. stock market's three major indexes are in correction territory now. The S&P 500, the inde
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Earnings
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