The S&P 500 Is Enduring Its 5th-Worst Start to a Year Since 1928. Here's What's Happened Next 100% of the Time Following Previous Double-Digit Declines.
The stock market's bleakest starts to a year have had an uncanny ability to bring about outsize returns not long thereafter.
For more than a century, the stock market has been making patient investors notably richer. However, there's a cost of admission that comes with putting your money to work on Wall Street... and it's called volatility.
Following more than two years of nearly uninterrupted optimism, the mature-stock-driven Dow Jones Industrial Average (DJINDICES: ^DJI), widely followed S&P 500 (SNPINDEX: ^GSPC), and growth-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) have hit the skids. Since the S&P 500 hit its all-time closing high on Feb. 19, we've witnessed the Dow Jones, S&P 500, and Nasdaq Composite respectively lose 12.3%, 14%, and 18.8% of their value (as of the closing bell on April 17).
Relative to their all-time highs, the Dow and S&P 500 are firmly in correction territory. Meanwhile, the Nasdaq Composite's tumble, as of April 8, placed the index in its first bear market since 2022.