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    Dow Jones & NASDAQ Composite close in -10% correction territory

    To be precise,

    • the Dow is ~10.6% off its record of ~50.5k;
    • the NASDAQ Composite is ~12.8% off its record of ~24k; and
    • the S&P 500 is ~9.1% off its record of ~7k.

    Due to the outsized annual returns of the last 3 years, I came into 2026 thinking the odds of a pullback or negative year were higher than normal. However, I wasn’t confident enough to short sell the market, and I left my long-term retirement holdings unchanged. So I feel your pain.

    Long before the Middle East conflict, I noticed something rotten had been brewing in the markets for a long time. It started around last October, when the S&P 500 began to flatline near the 7,000 milestone but was unable to break through it.

    Under the seemingly calm surface was what’s known as a rolling bear market, in which entire industries or categories of stocks began selling off, one at a time, often far in excess of the 20% bear market threshold. Because that money was looking for new homes, investors kept rotating into other industries, keeping the index levels stable. When the last remaining dams finally burst, all that money suddenly came flooding out of the markets, leading to the current correction.

    • Software / SAAS / Cloud: topped out around July 2025; currently down 30-50%
    • Bitcoin / virtual currencies / fintech: topped out in Oct 2025, currently down ~40%
    • Big Tech / Magnificent 7: topped out in Oct 2025, currently down ~20%
    • Big banks (JPM, AmEx etc): topped out in Dec 2025; currently down 20-30%
    • Gold / Silver / precious metals / miners: topped out in Jan 2026, currently down ~20-40%
    • (Iran war broke out on 28th February; the NASDAQ was already 5-6% off highs then)
    • The latest bubble to pop is memory/RAM, with Micron, Sandisk etc. down 20-25% from their pre-earnings run-ups.

    Given the magnitude of these declines, the rest of the market that’s not AI-adjacent is actually holding up extremely well.

    Dow Jones & NASDAQ Composite close in -10% correction territory
    byu/MarkusEF inwallstreetbets



    Posted by MarkusEF

    28 Comments

    2. No_Week_6782 on

      Can someone explain to me how the “greatest” and “best” military in the world can’t beat these mullahs???? The fact they still have control over the strait and have not been decimated is ridiculous. He messed up this war plan big time.

    8. ETNZ2021 on

      The daily chart is horrible. We aren’t even close to a bottom or max pain. Every pop faded. The algos are smart – not dropping too fast to trigger a rebound – like boiling a frog.

    10. daddysgirl794 on

      No end to the war in sight, every TACO pump has been getting weaker and weaker, stagflation on its way…

      10% feels bad enough but I won’t be surprised if we hit -20% or even 25% by the time this is all over.

    13. Safe-Tennis-6121 on

      I sold before the mid eastern adventure started. Not everything but a good portion converted to short term treasuries.

      I just did not realize that foreign stocks would go down too.

      So now I’m in the 60 day waiting period.

    17. Rabbit-Hole-Quest on

      This is just the beginning. Wait until factories all over East Asia have to shut down due to an energy crisis or lack of supplies.

      Old 🥭 is talking about ships getting through, but you can see real time data and barely 4 to 6 are passing per day – https://hormuzstraitmonitor.com/

    18. RikerTroiAwkwardHump on

      Hey guys I’ve lost 50k in the past 90 days is that just chump change or do I need to take the Hemingway

    19. GRILT_CHEESE on

      If we just left Iran now, would Iran open the strait back up? Like let’s say we completely left and moved all our ships and everything back home. Would they open back up for us? Or did he just totally fuck this up for the long haul?

    21. richbeezy on

      Love how ppl are so scared to buy down 10%, but will happily buy at ATH’s. Rinse n Repeat.

    26. No_Plastic_7533 on

      The Strait is basically the worst possible asymmetry: you can be the best navy on earth and still cant make thousands of miles of ocean 99.9% safe from a handful of cheap drones and speedboats. Markets are just pricing that risk premium back in.

    28. DarkR124 on

      All we need is the AI bubble to pop for complete economic collapse. Yippee!

      On a serious note: made a ton on puts last two days, lost even more from my retirement account. The boring ETFs relying on gradual growth got completely wrecked.

      Fun times.

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