Nasdaq on cusp of first correction in more than two years as stock selloff accelerates
The Nasdaq Composite Index tumbled in a volatile session on Thursday, at one point dropping below a level that would officially represent a correction, should it end there. The Nasdaq shed 1.2% to 7,331. At its low of the session, it fell to 7,274.04. That low unofficially put the tech-heavy index on track to close in correction territory, defined as a 10% decline from its record closing high. According to Dow Jones market data, 7,298.72 is the level the Nasdaq would have to end under to officially enter correction territory. Were the Nasdaq to fall into a correction, that would be its first since one that ended in February 2016. The day’s losses were widespread; the Dow Jones Industrial Average shed 2%, as did the S&P 500 , although both were a few percent away from falling into correction territory. Recent weakness in the market has come on rising bond yields, which has fueled fears that profit margins of U.S. corporations may be squeezed by higher labor costs and loftier borrowing expenses.