Investors are experiencing the first big stock market sell-off of 2025. I have no idea -- and neither does anyone else -- when this drawdown will end or when another one will occur.
The Nasdaq index is now in correction territory, meaning it is now more than 10% down from its all-time high. While this may seem like a big deal, 10% corrections tend to occur just about every year, so this is something that investors must understand happens quite frequently.
In just a matter of weeks, tech stocks have gone from stretching to all-time highs to plunging on concerns around tariffs and even a recession.
After peaking on Dec. 16, the Nasdaq Composite -- which tracks almost every stock trading on the Nasdaq stock exchange -- has entered into a correction. The index is down around 9% year to date and 13% from its December peak.
Following the stock market's record-breaking run last year, the start of 2025 offers a timely reminder that risk and price volatility are normal parts of the investing process.
The 4% drop in the Nasdaq Composite Index (^IXIC 0.19%) on March 10 served as a wake-up call to investors. While that was not a record drop by any measure, it was the worst one-day decline since the fall of 2022, meaning many newer investors had never experienced a comparable decline.
Technology stocks are continuing to lead the market higher, buoying the Nasdaq Composite and S&P 500 while the Dow Jones Industrial Average has slipped into the red.
Nvidia (NVDA 5.20%) stock has been a fantastic medium- and long-term winner and even a winner over the last year. But shares of the artificial intelligence (AI) chip and technology leader have been having a tough time recently.
In recent trading sessions, Wall Street witnessed a bloodbath, with the “Magnificent Seven” stocks dragging the Nasdaq lower. Yet, it's still wise to have faith in three of them.
With the Nasdaq Composite hitting correction territory earlier this week, which is defined as at least a 10% decline from a recent high, investors may be getting worried. That's normal.
The start of 2025 has proven to be more challenging for investors compared to the stock market's record-breaking highs of 2024. The Nasdaq Composite index is down approximately 13% from its all-time high, amid renewed jitters regarding the strength of the economy and uncertainty over the effect of trade tariffs being implemented by the Trump administration.
With fears of a trade war and a potential economic recession rising, the Nasdaq Composite has fallen into correction territory, retreating more than 10% from its mid-December high. With this decline, a number of quality stocks have fallen to attractive entry points.