Nasdaq Enters Correction Territory

📉 US markets continued their decline yesterday. The Nasdaq entered what's known as correction territory, falling more than 10% from its recent peak in November. The Dow and S&P also dropped 1% apiece.

• The Nasdaq's recent pullback has been led by stocks whose valuation skyrocketed during the pandemic but are now coming back to earth. They include Zoom Video (-61% from highs last fall), Moderna (-64%), DocuSign (-59%), and Paypal (-44%).
• Many suggest the Nasdaq's recent decline is also partially inspired by the Fed's plan to raise interest rates, since many firms in the tech-heavy index rely on low rates to borrow for investing in R&D.
• The Nasdaq is down 8.3% so far in 2022, faring slightly worse than the Dow (-4.25%) and S&P (-5.5%).

+Zoom in: Ford (-8%) logged its worst day since April, Sony is down nearly 12% since Microsoft announced it's buying Activision Blizzard, and Goldman Sachs dropped ~9% since reporting earnings Tuesday.