Nasdaq drops into correction territory — here’s what typically happens next

The Nasdaq Composite fell into correction territory, defined as a decline of at least 10% from its recent high, as the index extended a sharp selloff. The drop marks a notable shift in market sentiment for the technology-heavy benchmark, which had been near record levels. History shows corrections are relatively common and the index has typically recovered over time, though drawdowns can deepen before a bottom forms. Investors are now watching whether the pullback stabilizes or accelerates, with attention on upcoming economic data and earnings for signals about the market's next direction.