Market Correction

A correction is a decline of at least ten percent from a recent peak, sharp enough to make headlines but not severe enough to count as a bear market, which requires a twenty percent drop. Corrections happen fairly often, on average about once a year historically, and most resolve within a few months without turning into something worse. The word itself carries a slightly reassuring implication, that prices had gotten ahead of themselves and are simply resetting, which isn't always true, but it's the label markets reach for first.