500 isn't?
A correction is the name traders use for a drop of at least 10% from a recent high. It isn't an official rule, just a widely used convention. A drop of 20% or more from the high is usually called a bear market. FINRA, Schwab and Morningstar all describe it roughly this way. On Tuesday, November 3, the Nasdaq-100 rose 0.7% to 28,180.26, but CNBC noted it was still in correction territory, about 10% below its recent high, after a rough stretch for big tech stocks.
The same day, the S&P 500 rose 0.36% to 7,568.92 and snapped a three-day losing run. That left it about 3.5% below its 52-week high of 7,844.52, so it isn't in a correction. Two indexes can sit in very different places because they hold different stocks. The Nasdaq-100 is packed with large tech companies, so when those fall hard, it feels it more than a broader index does.
The takeaway for new traders: "correction" and "bear market" are just labels for how far prices have fallen from a peak. They don't tell you what happens next. Schwab's research found that only 6 of 27 S&P 500 corrections since 1974 turned into bear markets, and nobody can know in advance which ones will. Have you ever been through a market drop like this? Ask anything below. There are no silly questions here.
Sources: CNBC market wrap (Nov 3, 2026); MarketWatch market close (Nov 3, 2026); Motley Fool S&P 500 data (Nov 3, 2026); FINRA "Key Terms for Tough Times"; Charles Schwab "What Is a Market Correction?"; Morningstar "Bear Market vs. Correction".
John Murray
A correction is just a label for how far prices have slipped from a high, not a forecast, so it's a good moment to stick to your plan. Setting a daily spend cap before the session starts keeps a rough week from making your decisions for you. Market awareness, not financial advice.
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