The S&P 500 index is on track to close in correction territory on Friday, marking the 103rd time in history if confirmed.
Market Performance
According to FactSet data, the gauge of large-cap U.S. equities SPX slipped by 21 points, or 0.5%, to approximately 4,116 during Friday afternoon. This decline represents a 10.3% drop from its previous cyclical high of 4,588.96 reached on July 31, 2023.
To confirm a correction, the S&P 500 must finish below 4,130.06, as reported by Dow Jones market data. Interestingly, the Nasdaq Composite recently entered correction territory on Wednesday.
Historical Trend
Based on historical data, the S&P 500 has experienced 15 corrections in the past. On average, it takes around three months for the index to recover its performance following a correction. Moreover, a year later, the index shows an average gain of 10.1%.
Long-Term Perspective
Analyzing data since 1928, the S&P 500 has generally shown resilience following a correction. On average, it registers a yearly increase of 9.1% after a correction.
Market Comparison
Despite the potential correction, the S&P 500 remains up by 7.2% year-to-date. In comparison, the Nasdaq Composite has achieved a substantial gain of 20.6%, while the Dow Jones Industrial Average has experienced a slight decline of 2.1%, according to FactSet data.
—Ken Jimenez contributed.
Our Latest News
Scout24 Reports Strong Preliminary First-Half Results and Upgrades 2023 Guidance
Scout24's preliminary first-half earnings and revenue exceed expectations, leading to an upgrade in guidance for the entire year. Analysts attribute growth to f...
Stock Market Performance under President Biden
The performance of U.S. stocks under President Joe Biden compared to previous administrations, concerns about the discrepancy, and future outlook
U.S. Navy Warship Intercepts Missiles and Drones from Yemen
A U.S. Navy warship intercepts missiles and drones launched from Yemen, potentially heading towards Israel. No injuries reported.