Stock Markets Enter Correction Territory

Amid increasing concerns about the spread of the coronavirus (COVID-19) and its potential impacts on global economic growth, many major global stock markets entered correction territory on Thursday; a correction is generally defined as a 10% or more peak-to-trough decline based on closing prices.

Around the world numerous large cap equity indexes, including the NASDAQ Composite, Dow Jones Industrial Average (Dow), Stoxx Europe 600, and FTSE 100, closed with corrections from recent highs. The Dow’s largest ever daily point drop made headlines, but in percentage terms, the decline actually ranked only 125th of all time. The S&P 500 Index closed down more than 4% on the day, the latest of six consecutive down days, which cumulatively wiped off more than 12%  from last week’s record closing high on February 19, the fastest ever such correction from a record high.

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