9 of the Last 10 Nasdaq Corrections Ended Higher in 6 Months. Will the Fed Allow It?

A 5.52% decline left the Nasdaq Composite at 24,315 on Thursday, entering correction territory about 12% below its October 6 record, as chip stocks led a selloff after Democrats won both chambers of Congress and governor races in major data-center states. In the prior 10 Nasdaq corrections, the index rose six months later in nine cases, averaging a 17.03% gain from the first close in correction territory; January 2022 was the exception, down 18.32% six months later. The Federal Reserve raised its benchmark range to 3.75%–4.00% in September and held in October, with Governor Lisa Cook and Cleveland Fed President Beth Hammack favoring a quarter-point increase. December rate-hike odds stood at 68.1% Thursday, down from 82.7% a day earlier.