The Nasdaq Composite plunged into correction territory on Thursday. History shows more selling can follow in the near term, but a recovery eventually takes hold three months later. The tech-heavy index slid more than 5% on Thursday, closing more than 11% below its record reached last month. On Wall Street, any decline greater than 10% is a correction. A 20% pullback qualifies as a bear market. Across 10 previous correction episodes over the last decade, selloffs in 2025, 2022, 2020 and 2018 were followed by further rough selling over the next one month. But the Nasdaq was back to rally mode again after six months for all those occasions except one: 2022. Overall, the Nasdaq gained an average of 9.
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