How Far Could the Nasdaq Plunge? Here's Why 8,000 Is a Reasonable Target
Buckle up and hang on, because it's been a challenging year on Wall Street. Since hitting its respective all-time high during the first week of January, the benchmark S&P 500 (SNPINDEX: ^GSPC) pulled back by as much as 24%. In fact, the widely followed index delivered its worst first-half to a year in more than a half-century.
It's been even tougher sledding for the growth-dependent Nasdaq Composite (NASDAQINDEX: ^IXIC), which lost as much as 34% of its value since hitting its all-time intra-day high in mid-November. Because growth stocks largely led the market higher following the COVID-19 crash of February-March 2020, Wall Street and investors have been keeping a closer eye on the performance of the Nasdaq than in years' past.
It's led to the perhaps the most important question of all: How far could the Nasdaq Composite ultimately plunge? Based on history and a variety of data points, a roughly 50% decline that took the index to around 8,000 may well be in the cards.
Source Fool.com
