NEW YORK (Reuters) – The Nasdaq’s withdrawal from last month’s all-time highs is now officially considered a correction in a bullish market.
On Monday, the heavy technology index closed 2.22% unofficially at 12,633.61, about 10.6% below the February 12 record, closing at 14,095.47 and surpassing the 10% threshold. closing considered by market professionals as confirmation of a correction. The Nasdaq entered the last bullish market last March and rose more than 105% from the pandemic low of a year ago.
Market-leading technology megacaps, which account for much of the Nasdaq’s total market value, thrived during the pandemic recession. But many of these stocks are now seen by some investors as overvalued.
The more cyclical stocks, which were mistreated by the shutdowns and will benefit most from the economic recovery, have gained their favor as the deployment of vaccines gains strength and restrictions are removed.
For the year, the Nasdaq is down 2.2%, while the S&P 500 and Dow are up 1.7% and 3.9%, respectively.
(This story corrects the start date and the bullish market profit percentage in paragraph 2)
Reports by Stephen Culp; Edited by Alden Bentley