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A Majority of the S&P 500 Is in Correction Territory as the Benchmark Approaches a Key Milestone

Photo credit: www.cnbc.com

Stocks Plunge as Wall Street Faces Continued Sell-off

The New York Stock Exchange (NYSE) observed notable activity as traders adapted to a fluctuating market climate. On March 10, 2025, many analysts noted that the downturn appears to be deepening, with significant implications for investors.

An alarming trend has emerged, as a substantial majority of stocks listed in the S&P 500 have entered correction territory. Recent data indicates that at the close of trading on Monday, 366 of the S&P 500 components—representing approximately 73% of the index—were valued at least 10% lower than their respective 52-week highs, signifying that they are in a state of correction. Furthermore, 203 of these components plunged over 20% below their peaks, categorizing them within bear market criteria.

As of Tuesday, the S&P 500 continued to struggle, hovering around 9% below its most recent high achieved on February 19. The market’s decline intensified over the past week, driven largely by President Donald Trump’s assertive tariff policies, which have heightened concerns regarding the potential for slowed economic growth and even the possibility of a recession.

Sector Performance and Notable Outliers

Five out of the eleven sectors within the S&P 500 index are currently grappling with correction conditions. This includes significant segments such as consumer discretionary, technology, communication services, materials, and energy.

Particularly striking are the dramatic declines seen in certain stocks. Companies like Moderna, a drug manufacturer, and Super Micro Computer, known for its volatile ties to artificial intelligence, have experienced staggering drops of 79% and 69% from their all-time highs, respectively. Additionally, prominent firms such as First Solar, Intel, Enphase Energy, Dollar Tree, Estee Lauder, and Tesla have all witnessed reductions of at least 50% from their recent peaks.

This overarching sell-off serves as a critical reminder of the ongoing volatility in today’s market, urging investors to reassess their positions and strategies in light of emerging economic indicators.

Source
www.cnbc.com

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