[Christian Harris]

The S&P 500 officially entered correction territory on Thursday, dropping 1.4% to close at 5,614.56—now 10.1% below its February peak.

This marks the index’s first correction since 2023 and erases all gains made since the November election.

The broader market has shed a staggering $5 trillion in market capitalisation, with the Nasdaq Composite falling 2% and the Dow Jones Industrial Average sliding 1.3%.

The correction is driven by a mix of factors, including escalating trade tensions, inflation concerns, and policy uncertainty.

President Trump’s recent tariff threats—like a proposed 200% levy on EU wine and spirits—have rattled investors, while the looming threat of a government shutdown adds another layer of instability.

From a technical perspective, the S&P 500’s drop below its 200-day moving average signals weakening momentum, and the Nasdaq’s 14.2% decline from its December high suggests the tech sector is particularly vulnerable.

Historically, corrections average 115 days, but the current downturn has only lasted 22 days, leaving room for further volatility.

Goldman Sachs recently cut its year-end S&P 500 target to 6,200, citing tariff-related economic uncertainties.

However, a reversal in growth expectations, improving economic data, or a shift in Trump’s trade policies could spark a recovery.

What’s your take—is this a temporary pullback or the start of a deeper downturn? 🤔📉

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