Historical data shows that steep declines in the S&P 500 are often followed by strong rebounds.

From Nasdaq MarketSite: 2025-04-19 03:06:00

Stocks have historically outperformed other asset classes, but with high volatility. The recent roller-coaster ride of major indexes like the Dow, S&P 500, and Nasdaq has seen significant declines, notably a 12.1% drop in the S&P 500 in just four days. This was triggered by President Trump’s tariff announcements and rising U.S. Treasury yields. However, historical data shows that such declines have often preceded strong rebounds, with average total returns of 33.8%, 49%, and 112.1% one, three, and five years later, respectively. Despite short-term scares, long-term investors can benefit from market downturns.



Read more at Nasdaq MarketSite: The S&P 500 Just Endured Its 12th Biggest 4-Day Decline Since 1950 — and History Shows This Happens Next 100% of the Time Following Steep Downturns