The Tesla Shock Nobody Sees Coming

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

A 10% drop for stocks is scary, but isn't that rare

STAN CHOE
March 13, 2025

NEW YORK (AP) -- The U.S. stock market has just dropped 10% from its high set last month, hurt by worries about the economy and a global trade war.

T he fall for the S&P 500 is steep enough that Wall Street has a name for it: a "correction." Such drops have happened regularly for more than a century, and market pros often view them as potentially healthy wipeouts of overdone euphoria, which could send stock prices too high if unchecked.

But corrections are frightening in the moment, particularly for every new generation of investors that gets into the market at a time when it seems like stocks only go up.

The S&P 500 is coming off two straight years with gains of more than 20%. Such stellar gains left the market looking too expensive to critics, who pointed to how prices rose faster than corporate profits.

Culling too-high enthusiasm among day traders is one thing. The larger fear always accompanying a correction is that it could be a warning sign of a coming "bear market," which is what Wall Street calls a drop of at least 20%.

Here's a look at what history shows about past corrections, and what market watchers are expecting going forward.

What's behind this correction?

The U.S. stock market initially jumped after President Donald Trump's election in November on hopes he'd bring lower taxes, less regulation for businesses and other policies that would drive corporate profits higher. All those gains have since disappeared, as Wall Street faces the potential downsides of Trump's White House for the economy.

The president has been making announcements on tariffs at a dizzying pace, first placing them on trading partners, then exempting some and then doing it all over again. The tariffs could hit every country that trades with the United States, which would raise prices for U.S. households and businesses when high inflation has already proven stubborn to fully subdue.

The fear is that tariffs could slow or even halt the solid growth the U.S. economy was showing when it ended 2024. Even if Trump ultimately goes forward with less painful tariffs, all the uncertainty around the will-he-or-won't-he rollout could prove damaging by freezing economic activity. Such concerns have shown up in the latest readings on consumer confidence, as well as companies' forecasts for future profits.

Trump himself has acknowledged his plans could affect the U.S. economy's growth.

All the uncertainty is also making things more complicated for the Federal Reserve, which had been cutting interest rates after getting inflation nearly all the way down to its 2% target. Cutting rates further would help the economy, but it could also put upward pressure on inflation.

The brunt of this sell-off has also hit stocks that critics were saying looked the most expensive after running wild through the frenzy around artificial intelligence. Nvidia, for example, has already dropped roughly 14% in 2025 so far after surging more than 800% through 2023 and 2024.

Most of the other big stocks in the "Magnificent Seven" that have dominated the market recently have also been lagging the rest of the S&P 500. Those seven stocks alone had accounted for more than half the S&P 500's total return last year.

How often do corrections occur?

Every couple years, on average. Even during the historic, nearly 11-year-long bull run for U.S. stocks from March 2009 to February 2020, the S&P 500 stumbled to five corrections, according to CFRA. Worries about everything from interest rates to trade wars to a European debt crisis caused the pullbacks.

The U.S. market's last correction was in 2023, when the S&P 500 dropped 10.3% from the end of July into October. At the time, high Treasury yields were undercutting stock prices as traders accepted a new normal where the Fed would keep rates high for a while. But stocks would quickly turn higher as optimism revived that cuts to rates were on the horizon.

The last correction that did graduate into a bear market was in 2022. That's when the Fed first began cranking up interest rates to combat the worst inflation in generations. Worries rose that high rates would slow the economy enough to create a recession, one that ultimately never came.

Through the 2022 bear market, the S&P 500 fell 25.4% from Jan. 3 to Oct. 12.

What typically happens after a drop like this?

Looking only at corrections since 1946 that managed to right themselves before turning into a bear market, the S&P 500 has taken an average of 133 days to hit bottom and lost an average of nearly 14% along the way, according to CFRA. The index has taken an average of 113 days to recoup its losses.

For declines that become bear markets, the damage is much worse. Going back to 1929, the average bear market has taken an average of nearly 19 months to hit bottom and caused a loss of 38.5% for the S&P 500, according to S&P Dow Jones Indices.

How bad can a bear market be?

On paper, an investor can lose most of their money. From late 1929 into the middle of 1932, the stock market fell a little more than 86%, for example.

A bear market can also feel interminable: One lasted more than five years, from 1937 into 1942, where U.S. stocks lost 60%, according to S&P Dow Jones Indices.

In Japan, after the Nikkei 225 index set a record at the end of 1989, it sank and then took decades to fully recover. It wasn't until 2024 that it got back to that peak.

The Japanese example is an outlier, though. In almost every case, investors would have made back all their losses from a downturn for U.S. stocks if they simply held on and didn't sell. That includes the 2000 dot-com bust, the 2008 financial crisis and the 2020 coronavirus collapse.

What should we expect this time?

No one knows. Some investors on Wall Street say they expect Trump to pull back on some policies if they prove to be too damaging, while others say the uncertainty alone is creating enough pain.

The economy has given signals that it's still relatively solid at the moment, including last month's jobs report, but the outlook looks cloudier than usual given all the unknowns.

Continue Reading...

Popular

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

Putting Your Name on This List Could Hand You $1,270 on Friday - Ad

URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

These are the celebs who are attending Jeff Bezos’ Venice wedding

VENICE, Italy (AP) — arrived in Venice on Thursday, leading a star-studded guest list of celebrities descending on the lagoon city for the weekend wedding of Amazon founder Jeff Bezos and Lauren Sánchez.

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

FDA requires updated warning about rare heart risk with COVID shots

WASHINGTON (AP) — said Wednesday it has expanded existing warnings on the two leading COVID-19 vaccines about a rare heart side effect mainly seen in young men.

Goldman Just Launched Two New Bond ETFs; Here's Why Investors Should Pay Attention

Goldman Sachs Asset Management debuts two new actively managed fixed income ETFs in response to rising demand for active strategies in a volatile rate landscape.

Have You Seen this Strange Elon Musk Device? - Ad

Tech legend Jeff Brown predicts this "space technology" will be Elon Musk's next trillion-dollar business, and it will make a lot of people rich. This could be the biggest internet innovation since the first web browser Netscape kicked off the internet boom in the late 1990s.

VC Insists Only '996' Culture Can Propel Toward Billion-Dollar Startups, But Reveals 'There Is Nuance'

Venture capitalist Harry Stebbings argues that founders who work 5 days a week won't lead a $10B company. He says 7-day weeks are necessary for AI dominance. Critics called it toxic, but others like Shark Tank's Kevin O'Leary and Google's Sergey Brin agree.

Occidental Petroleum, Exxon Mobil, Chevron Surge In Monday Pre-Market: What's Going On?

Occidental Petroleum Corp (NYSE: OXY), Exxon Mobil Corp (NYSE: XOM) and Chevron Corp (NYSE: CVX) climbed 1.95%, 1.53% and 1.31% during Monday pre-market trading session after oil prices have skyrocketed to their highest point since January, sparking concerns about potential supply disruptions.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Netflix's Squid Game Finale Takes Over Seoul With Massive Parade, Star-Studded Fan Event

Netflix celebrated the finale of Squid Game with a parade and fan event in Seoul, featuring characters and emotional reflections from cast.

Trump ramps up attacks on the Federal Reserve but Powell sticks to 'wait and see' stance

WASHINGTON (AP) — Federal Reserve Chair Jerome Powell on Tuesday stuck to that the central bank will keep its key rate on hold while it waits to see how President Donald Trump's effect the economy, despite the from the White House, which wants lower borrowing costs.

Make This Move Before Nvidia's Critical Update (Unique Play) - Ad

Nvidia's CEO is about to say five simple words that could ignite the next explosive phase of the AI boom. It's not about tariffs or China--but it could change everything. This moment could define the biggest profit wave yet.

Meta, KKR, Lululemon And An Industrial Stock On CNBC's 'Final Trades'

Experts predict KKR, Lululemon, Meta Platforms, and Rockwell Automation to perform well.

DOGE-Fame 'Big Balls' Is Reportedly Leaving The Government Department Once Headed By Elon Musk — Dogecoin Price Rises

Another key figure at the Department of Government Efficiency, nicknamed “Big Balls”, has reportedly stepped down, following the exit of Elon Musk from the federal initiative meant to reduce wasteful spending.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

A hard-right lawmaker is sworn in as Greece's migration minister

ATHENS, Greece (AP) — A hard-right lawmaker was sworn in Monday as Greece’s migration minister, replacing a fellow right-wing political heavyweight who resigned following

Iran's Top Diplomat To UN Says Uranium Enrichment To Continue: An 'Inalienable Right'

Iran reaffirms commitment to nuclear program despite US strikes. Ambassador cites Non-Proliferation Treaty as justification. Impact remains debated.

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Trump Brokers Peace Deal Between DR Congo And Rwanda — Now Eyes Billions In US Investment

Trump brokers a peace deal between DR Congo and Rwanda, aiming to end conflict and unlock U.S. investment in critical African minerals.

Trump's Crypto Ventures, Draper And Cathie Wood's Bitcoin Predictions, MSTR Estimates, And More: This Week In Crypto

The past week in the world of cryptocurrency was nothing short of eventful. From legislative moves aimed at curbing alleged corruption in cryptocurrency ventures to bold predictions about Bitcoin’s dominance, the week was filled with intriguing developments. Here’s a quick recap of the top stories that made headlines.

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Buffett's favorite market signal just hit its highest level in history-stocks are more overvalued than 1929. He's sitting on $325B in cash... and may be about to buy one overlooked gold miner. I've identified it-plus 4 others with up to 100X potential.

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Apple Has the Potential To Crush Meta's Ray-Ban Smart Glasses, Says Ming-Chi Kuo, But The Tech Giant Has Been 'Surprisingly Slow'

Analyst Ming-Chi Kuo believes Apple has the potential to surpass Meta's Ray-Ban smart glasses, but notes the company's slow progress in this market could delay its dominance.

FDA vaccine official restricted COVID vaccine approvals against the advice of agency staff

WASHINGTON (AP) — The working under Health Secretary recently of two COVID-19 vaccines, disregarding recommendations from government scientists, according to federal documents released Wednesday.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

What to Stream: Ryan Coogler’s 'Sinners,' a Kesha album, 'SharkFest' and John Cena with Idris Elba

Kesha enjoying her freedom on her first new album since she left her old label and Ryan Coogler’s guts-spilling vampire film “Sinners,” are some of the new television, films, music and games near you.

Bye Bye Birdie: Twitter Blue Bird Logo Blown Up To Promote Online Marketplace Company

Elon Musk bought Twitter for $44 billion and rebranded it to X, auctioning off old memorabilia like the iconic blue bird logo. Ditchit, the buyer of the logo, recently blew it up in a promotional stunt.

Putting Your Name on This List Could Hand You $1,270 on Friday - Ad

URGENT: On Tuesday, a simple set of instructions will be sent out to an elite group of investors. The folks in this group will have the opportunity to place a 10-minute trade that could double their money by Friday. Consider this your invitation to join them. The next trade is just days away.

How a GOP rift over tech regulation doomed a ban on state AI laws in Trump's tax bill

NEW YORK (AP) — A controversial bid to deter states from regulating artificial intelligence for a decade seemed on its way to passing as the championed by worked its way through the U.S. Senate.

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

Warren Buffett Skips Big Banks Like JPMorgan and Wells Fargo, Bets $459 Million On This One Asset

Warren Buffett has shifted his investment strategy, investing $459 million in Sirius XM after selling his stakes in Bank of America, JPMorgan Chase, and Wells Fargo.

Have You Seen this Strange Elon Musk Device? - Ad

Tech legend Jeff Brown predicts this "space technology" will be Elon Musk's next trillion-dollar business, and it will make a lot of people rich. This could be the biggest internet innovation since the first web browser Netscape kicked off the internet boom in the late 1990s.

Bernie Sanders Warns Of 'Concentration of Ownership' In US Companies: 'That's Power'

Bernie Sanders claims Wall Street giants hold majority of US corporations, giving them power to steer economy & politics. Wants reform & better wages

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright systemtrading.ca
Privacy Policy | Terms of Service