What Is a Market Correction? Definition, Examples & Impact

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The Street

By TheStreet Staff What Is a Stock Market Correction?A market correction is said to have occurred when the stock market—as gauged by a major index like the S&P 500—falls in value by between 10 and 20 percent after an uptrend or period of stability. A decline of over 20 percent that lasts for a significant period is considered a bear market, which is more severe than a correction. Note: Market corrections are not to be confused with asset corrections, which occur when a single security (e.g., Apple stock or Bitcoin) falls by 10 or more percent independent of the market at large. What Causes Mar…

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