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

By The Associated Press Markets Associated Press

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."

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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 correction Decline in Percent
May 21, 2015-Feb. 11, 2016 14.2
April 29, 2011-Oct. 3, 2011 19.4
April 23, 2010-July 2, 2010 16
Nov. 27, 2002-March 11, 2003 14.7
July 16, 1999-Oct. 15, 1999 12.1
July 17, 1998-Aug. 31, 1998 19.3
Oct. 7, 1997-Oct. 27, 1997 10.8
Oct. 9, 1989-Jan. 20, 1990 10.2
Oct. 10, 1983-July 24, 1984 14.4
Feb. 13, 1980-March 27, 1980 17.1
Oct. 5, 1979-Nov. 7, 1979 10.2

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Source: S&P Dow Jones Indices