US stocks have been resilient over the last four decades. One year after each of the S&P 500 Index’s 10 worst one-day drops prior to 2020, the Index notched double-digit positive returns in all but one instance. Returns remained positive across the board three and five years later, too. The chart below doesn’t include reinvested dividends, which would have made the returns even higher.
10 Worst Single-Day Percent Declines for US Stocks 1980 – 2019
| Date | Cause | Annualized (%) | |||
| One-Day Fall (%) | Return After 1 Year | Return After 3 Years | Return After 5 Years | ||
| 1. 10/19/1987 | Black Monday | -20.47 | 23.19 | 11.59 | 13.03 |
| 2. 10/15/2008 | Global Financial Crisis | -9.03 | 20.79 | 10.50 | 13.34 |
| 3. 12/1/2008 | Global Financial Crisis |
-8.93 | 35.85 | 15.11 | 17.22 |
| 4. 9/29/2008 | Global Financial Crisis |
-8.79 | -4.14 | 1.60 | 8.87 |
| 5. 10/26/1987 | Black Monday 2.0 | -8.28 | 23.59 | 10.20 | 12.92 |
| 6. 10/9/2008 | Global Financial Crisis | -7.62 | 17.76 | 8.30 | 12.73 |
| 7. 10/27/1997 | Asian Financial Crisis | -6.87 | 21.48 | 16.30 | 0.47 |
| 8. 8/31/1998 | Russia Defaults on Loans | -6.80 | 37.93 | 5.80 | 1.04 |
| 9. 1/8/1988 | Brady Commission Releases Report on Causes of Black Monday | -6.77 | 15.19 | 8.92 | 12.00 |
| 10. 11/19/2008 | Global Financial Crisis | -6.71 | 45.05 | 17.35 | 18.81 |
Past performance does not guarantee future results. Data sources: Morningstar, Ned Davis Research, and Hartford Funds, 3/20. Data shown is for the S&P 500 Price Index as of 12/31/19 and does not include the reinvestment of dividend payments. Indices are unmanaged and not available for direct investment. List does not include single-day declines in 2020 in order to provide returns from the ensuing 1-, 3-, and 5-year periods.
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S&P 500 Index is a market capitalization-weighted price index composed of 500 widely held common stocks.
Important Risks: Investing involves risk, including the possible loss of principal.
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