Past corrections: Drops of 10 percent or more in the S&P 500

Specialists Charles Boeddinghaus works on the floor of the New York Stock Exchange, Monday, Feb. 5, 2018. The Dow Jones industrial average plunged more than 1,100 points Monday as stocks took their worst loss in six and a half years. (AP Photo/Richard Drew)

Richard Drew

Even after its steep drops Friday and Monday, the Standard & Poor's 500 index has yet to decline 10 percent from its most recent peak, which is known on Wall Street as a "correction."

Not only are corrections common during bull markets, they're seen as entirely normal and even healthy. They allow markets to remove speculative froth after a big run-up and allow investors to buy stocks at more reasonable prices.

The S&P 500, the market's most widely used benchmark, is now down 7.8 percent from its most recent peak set on January 26. The S&P 500 has gone without a correction for about two years, an unusually long gap.

Here are the past 10 corrections in the S&P 500 index:

Span of the correctionDecline in Percent
May 21, 2015-Feb. 11, 201614.2
April 29, 2011-Oct. 3, 201119.4
April 23, 2010-July 2, 201016
Nov. 27, 2002-March 11, 200314.7
July 16, 1999-Oct. 15, 199912.1
July 17, 1998-Aug. 31, 199819.3
Oct. 7, 1997-Oct. 27, 199710.8
Oct. 9, 1989-Jan. 20, 199010.2
Oct. 10, 1983-July 24, 198414.4
Feb. 13, 1980-March 27, 198017.1
Oct. 5, 1979-Nov. 7, 197910.2

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Source: S&P Dow Jones Indices

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