New York (CNN Business)The S&P 500 and the Dow are still near all-time highs despite Tuesday’s big selloff. The Nasdaq isn’t far from a record either. All three indexes are up between 14% and 18% this year.
But September, historically the worst month for stocks, is looming. After that comes October, which is notorious for the scary market crashes in 1929, 1987, 2008 and, most recently, 2018. And in case you haven’t noticed, there are plenty of things for investors to be worried about.
The spike in Covid-19 cases due to the Delta variant, concerns about rising inflation pressures and how the Federal Reserve will respond to it, and the chaos in Afghanistan all threaten to derail the market’s bull run.
That’s led to increased worries that stocks may soon experience a so-called correction, defines as a 10% pullback from recent highs. Stocks haven’t gone through one since the Covid lockdowns in March 2020, which created a brief bear market and led to a more than 20% slide from a prior peak.
US stocks were flat Wednesday.
www.cnn.com/2021/08/18/investing/stock-market-correction/index.html