Anxiety over tariffs and economic growth issues recently caused the S&P 500 to enter correction territory. Despite this, historical data indicates that the market has rebounded higher within a year after each correction since 1955. Typically, it takes about four months for stocks to recover following a correction. The recent downturn in the S&P 500 was linked to concerns about President Donald Trump's trade policies and a slowing economy. However, past corrections have not necessarily led to bear markets, suggesting that patient investors could anticipate positive growth in the coming months.

A study by Covenant Wealth Advisors, as reported by Axios, found that market corrections usually take around four months to recover from, based on data compiled by Ryan Detrick. Analysis of the 12 corrections since 1955 revealed that the S&P 500 saw an average 14.7% increase within the next year after entering correction territory. In several instances, the market reached a bottom within a day, leading to notable returns in the following year.

Despite recent downward trends in the S&P 500, there is hope for a rebound. Even though market uncertainties have impacted investor confidence, forecasts still suggest potential growth in the index, with banks indicating that the worst may be over for the markets. While correction territory does not inevitably signal a bear market, it is important to monitor how the S&P 500 progresses. Past bear market recoveries have taken longer, averaging around two years and two months. However, current outlooks predict a climb in the index, with major banks estimating an average S&P 500 target of 6,500. Citi and Morgan Stanley believe that the S&P 500 likely hit its low point around 5,500 and are optimistic about future market performance.