Market correction

In stock markets, a market correction is a 10% drop in the value of a stock index. Corrections end once stocks attain new highs. Stock market corrections are typically measured retrospectively from recent highs to their lowest closing price and are sharper and steeper than bear markets. The recovery period can be measured from the lowest closing price to new highs, to recovery. Gains of 10% from the low is an alternative definition of the exit of a correction.

A sustained drop of 20% is not a correction, but a bear market.

A correction may also be a drop in a commodity price, as in the 2000s United States housing market correction.