Whipped by volatile internet and biotech stocks, the Nasdaq staged a more than 2 percent rally back from the brink of correction territory Tuesday in the biggest one day turnaround in five years.
At its lowest point Tuesday, the Nasdaq was off 9.7 percent from its March intraday high of 4371 - close to the 10 percent threshold that some traders say marks an official correction. But the market bounced back, and Nasdaq ended the day with an 11 point gain at 4034, about 7.7 percent below its March 6 high.
Some of the very stocks that helped push the to fresh 14-year highs by early March were slammed in early trading Tuesday, adding to losses of more than 20 or 30 percent from their highs. The poster child for momentum—the iShares Nasdaq Biotechnology ETF IBB—was down as much as 24 percent from its Feb. 25 high Tuesday but closed in positive territory.