The Nasdaq Composite Just Plunged Almost 700 Points in One Day: Is a Stock Market Crash Imminent?

The Nasdaq Composite dropped 694 points (2.6%) on October 22, 2026, marking its largest daily decline since June. While the stock market has rallied significantly since 2022 driven by AI infrastructure spending, historical indicators suggest elevated crash risk: the S&P 500's CAPE Ratio near 43 (vs. historical average of 17.44) and margin debt at record $1.502 trillion. However, the article emphasizes that downturns are normal and historically resolve quickly, with bull markets lasting 3.6 times longer than bear markets on average.