Nasdaq Composite stands less than 1% from exiting correction territory Monday afternoon

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The Nasdaq Composite Index on Monday afternoon was surging more than 3% higher, putting the technology-laden index within striking distance of exiting a plunge into correction territory produced back on Sept. 8. A drop of at least 10% for an asset from a recent peak is the commonly used definition on Wall Street for a correction, while putting in a new high after that decline is often viewed as that asset exiting that bearish phase of trading. The Nasdaq Composite sank into correction–after putting in its most recent record high on Sept. 2–early last month but is now nearing a new record peak above 12,056.44, putting the benchmark about 0.8% from its all-time high, according to FactSet data. The Nasdaq has been powered higher by a handful of stocks in its resurgence from its March lows and Monday’s trade was no different, with Facebook Inc. Apple Inc. , Amazon.com [: AMZN], Netflix and Google parent Alphabet Inc. all rising sharply on the day. The contingent of stocks, known informally as FAANG (and sometimes including Microsoft Cor. , has helped to lift the broader market by dint of the market value those handful of those companies. The Nasdaq Composite was recently trading up 3.2% at 11,955, coming after brisk run-up for the index on Friday. The broader market also was gaining altitude briskly, with the Dow Jones Industrial Average [: DJIA] rising 1.1% and the S&P 500 index climbing 2% to 3,547. The S&P 500 had threatened to fall into correction, with a drop to 3,222.76 from its recent September peak, but managed to avoid a close at that level.
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