.August 14, 2024 03:36:21 AM

The recent correction in the S&P 500 is part of a historical pattern, indicating potential for long-term recovery despite short-term volatility. The index dropped 8.49%, marking its second significant correction this year, yet it has gained over 12% in 2024, surpassing the average annual increase since 1950.

The Volatility Index (VIX) spiked significantly, suggesting strong market returns a year later but also the possibility of negative returns in the short term. Investors should exercise caution as the VIX can be a precursor to market fluctuations.

Technology stocks like Nvidia face short-term challenges, while defense stocks like Northrop Grumman benefit from geopolitical tensions. NOC shares have increased by nearly 15% due to global conflicts, showcasing the impact of geopolitical events on market dynamics.