There are multiple reasons why the stock market is correction mode like
- High Valuations for companies where possibility of earnings growth is still not visible
- The US Federal Reserve rate hike that will lead to decrease liquidity among other things
- Inflation on a global scale owing to supply disruption rather than demand
- High Crude Oil Prices that are impacting sectors like Logistics, Aviation, Automobile, Chemicals etc.
- Possibility of Flare-ups in the World like Houthi Issue in Middle East, Russia-Ukraine War etc.
Hope this helps
Indeed the markets recovered on 25th Jan 2022, but this is a nominal recovery and correction is essential to bring value based system back to the stock market
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