The Nasdaq Composite Index COMP, -1.15% on Wednesday booked its first close in correction territory since March with a rapid surge in Treasury yields, and expectations for interest-rate increases from the Federal Reserve blamed for the weakness in the once-highflying benchmark.
The technology-heavy index is off to a terrible start, down 8.3% so far in 2022, closing out Wednesday down 1.2% at 14,340.26, putting it down 10.69% below its Nov. 19 record peak, and meeting the common definition for a correction in an asset’s value.
The benchmark also finished below its 200-day moving average for the first time since April of 2020 on Tuesday.
The index has registered a correction, as defined, 65 times (not including Wednesday’s) since it was first launched in 1971 and of those corrections, 24 of them, or 37%, have resulted in bear markets, or declines of at least 20% from a recent peak.
