Analysis: Nasdaq swings from fire to ice in two days, historical experience points to a subsequent return to upward momentum

Odaily reports: US tech stocks suffered a fierce sell-off overnight. The Nasdaq Composite Index (IXIC) plunged more than 5% on Thursday, closing more than 11% below the all-time high set last month, officially entering technical correction territory. Historical data shows that in the short term after a correction, the market may continue to come under pressure, but in most cases, the Nasdaq is subsequently able to gradually resume its upward momentum.

Over the past decade, the Nasdaq has experienced 10 similar corrections. In the pullbacks of 2025, 2022, 2020, and 2018, further selling occurred within one month after the correction. However, except for 2022, the Nasdaq re-entered an upward phase six months later in all of these periods.

In terms of overall performance, the Nasdaq rose an average of 9.41% within three months after hitting a correction low, and an average of 17.03% within six months. January 2022 was a clear exception: the Nasdaq fell a further 18.3% within six months after the correction, with a cumulative decline of 24.3% after one year.