Stock market pullbacks and corrections
February 6, 2018 -- After months of levitation, markets are down some eight percent from all-time highs, triggering fears of a pullback or so-called correction -- a 10 percent drop from the prior market peak.
The downturn in U.S. markets rippled around the globe. Japan’s Nikkei index plunged 4% in Tuesday morning trading while the S&P/ASX 200 in Australia dropped 3%.
London’s FTSE 100 was down 150 points or 2% at 7,184.74 in mid morning trade. Frankfurt’s Dax and Paris’s CAC were down 2.2% and 2% respectively.
Ed Yardeni, a stock market analyst, points out that the current bull market has been going since March 2009. In the past decade, there have been just four official corrections. The last full-fledged correction ended in early 2016.