Experienced Investor
Nasdaq falls into bear market territory
The Nasdaq Composite Index fell into bear market territory on Thursday, causing alarm bells to ring for investors all over the world.
The US-based index, which is home to some of the world’s best known technology and internet companies, was hit by a sell-off during Thursday’s trading session. It fell 1.6% over the course of the day, finishing at 6,528 points.
Professional investors are alarmed because yesterday’s trading session saw the Nasdaq move 20% lower since it reached its previous high at the end of August. A bear market is defined as a 20% drop from a high point. Fortunately, the index recovered some of its losses towards the end of the day – and finished 19.7% lower than its previous record.
The US has three major indices that investors watch closely: the Nasdaq, the S&P 500 and the Dow Jones Industrial Average. The latter three are around 15% lower in comparison to their previous respective highs.
On Friday morning, the FTSE 100 index was trading 0.5% lower at 6,682 points.