Is the Market Correction Ending?

The current equity market correction is entering its final capitulatory phase, having been in motion since liquidity began tightening last fall. While recent headlines focus on the Iran conflict and oil prices exceeding $100 a barrel, underlying market stress was already evident through rising volatility and a 20% decline in half of the Russell 3000 stocks. This drawdown is expected to be less severe than the 2025 recessionary correction because current earnings growth is stronger, fiscal support is higher via a 17% increase in tax refunds, and the Federal Reserve remains more accommodative through active asset purchases. Investors should prepare to add risk as the market processes final negative headlines, such as potential hawkish Fed commentary or triple-witching options expiration, which typically signal the rapid formation of a market floor before the bull market resumes.