The Nasdaq has historically rebounded quickly after closing in correction territory.
The Nasdaq Composite (^IXIC -3.43%) measures the performance of more than 3,000 companies from the Nasdaq Stock Exchange. The index is commonly seen as a barometer for growth stocks because it is heavily weighted toward the technology sector.
On Friday, Aug. 2, the Nasdaq closed more than 10% below the bull market high of 18,647 it reached in the previous month. That means the index has officially entered correction territory. The sharp, sudden drawdown was brought on by a resurgence in recession fears following a weaker-than-expected jobs report.
Specifically, the U.S. added just 114,000 jobs last month, missing the 179,000 jobs forecast by analysts. Additionally, unemployment rose to 4.3%, its highest level in nearly three years. Those numbers raise concerns about whether the Federal Reserve has waited too long to lower interest rates, a decision…
