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The Honolulu Advertiser
Posted on: Saturday, May 22, 2010

Stocks advance in wake of correction

Associated Press

NEW YORK The stock market had another tumultuous ride this week as disarray in Europe heightened fears of a global economic slowdown. Despite a late-day comeback yesterday, major stock indexes are down about 10 percent from the peak they reached in late April.

Declines of that size are known as a "correction." They are normal during a bull market and are even seen as a healthy way for a market to regain its bearings after a long period of uninterrupted gains. The correction that started this week is the first for the bull market that began in March of last year.

Whether the correction has mostly run its course or turns into a bear market, defined as a decline of 20 percent or more, is anyone's guess. Stocks are now about where they were in early February and down 2 percent for the year.