The S&P 500 officially entered correction territory, falling 10.1% from its Feb. 19 high after today’s 1.4% decline. This marks the fastest correction since early 2020.
🔻 $S&P 500(.SPX)$ : -1.4% (Now down 10.1% from recent high) 🔻 $NASDAQ(.IXIC)$ : -1.2% 🔻 Dow Jones: -1.1%
$Tesla Motors(TSLA)$ $Apple(AAPL)$ $KraneShares CSI China Internet ETF(KWEB)$ $Vanguard Mega Cap Growth ETF(MGK)$
1️⃣ Volatility Signals Market Stress
🔹 The CBOE VIX Index remains elevated, reflecting continued uncertainty 🔹 1% daily moves (up or down) are increasing, a sign of heightened volatility 🔹 Market stress typically forces policymakers to act, but until then, expect turbulence. The market is sending warning signals, but no policy relief is in sight yet.
$VIX
2️⃣ What History Says About Corrections
Corrections happen about once per year and last 3-4 months on average. The average correction loss is ~13% and is usually recovered within 4 months. Looking at the last 15 corrections, the S&P 500 was higher 13 times a year later, with an average gain of 15.3%.
3️⃣ Labor Market & Consumer Spending Holding Up
US Initial Jobless Claims: 220,000 (better than 225,000 expected) . Gasoline demand up 1.5% YoY, suggesting discretionary spending isn’t collapsing and Retail investors showing risk aversion—Google searches for stocks & bonds are surging…
Despite market fears, consumer activity remains resilient, at least for now.
4️⃣ Tariffs & Trade Uncertainty Weigh on Sentiment
nbc news
Market strategist Ed Yardeni: 🔹 Lowered S&P 500 year-end target from 7,000 to 6,400. Cites tariffs & trade tensions as key risks to valuations and Still expects an 8% gain for 2025, but less bullish than before
5️⃣ What’s Next?
CNBCMarket needs clarity on trade policy & Fed rate cuts before sentiment improves 🔹 Volatility likely to remain high until policy shifts or economic outlook stabilizes
Short-term risks are rising, but history favors long-term investors. Until trade and policy uncertainty clear up, expect continued volatility and cautious sentiment in the market.
If you find this post interesting, give it wings! ️ Repost and share the insights. Do consider “Follow me” and get firsthand read of my daily new post. Thank you.
@TigerStars @Tiger_SG @TigerCommunity @Tiger_comments @Daily_Discussion @TigerEvents
This summary is for informational purposes only and does not constitute financial advice. Investors should conduct their own research before making investment decisions.
Comments