A stock market correction is generally defined as a drop of 10% from recent highs, and the tech-heavy Nasdaq Composite just got there. The Nasdaq has been the best performing major market index for the past two years but has not exactly started 2025 on a high note.

Stock-market declines Tuesday put the Nasdaq Composite on pace to close in correction territory, while the S&P 500 wiped out its post-Election Day gains. The tech-heavy Nasdaq recently traded down more than 10% from its December closing high,

The Nasdaq Composite is on pace to close in correction territory on Tuesday. The tech-heavy index was down 1.2% to 18,130.75. It traded as low as 18,125.54. Any close below 18,156.50 would replace a 10% drawdown from its latest high,