“On Friday, America’s S&P 500 index rose by 9.3%, its third biggest percentage gain in over 50 years and the biggest single-day’s increase in terms of points and dollars over the same time span. Normally, global markets would take their lead from Uncle Sam, since the US stock market represents more than 60% of global equities’ total capitalisation but on this occasion they have shrugged and then sagged,” says Russ Mould, AJ Bell Investment Director.
|
Ten biggest single-day gains in S&P 500 since 1964 |
|||||||
|
|
In % |
|
|
In points |
|
|
In $ billion |
|
13-Oct-08 |
11.6% |
|
13-Mar-20 |
230.4 |
|
13-Mar-20 |
1,909 |
|
28-Oct-08 |
10.8% |
|
10-Mar-20 |
136.0 |
|
10-Mar-20 |
1,127 |
|
13-Mar-20 |
9.3% |
|
02-Mar-20 |
136.0 |
|
02-Mar-20 |
1,127 |
|
21-Oct-87 |
9.1% |
|
04-Mar-20 |
126.8 |
|
04-Mar-20 |
1,051 |
|
23-Mar-09 |
7.1% |
|
26-Dec-18 |
116.6 |
|
26-Dec-18 |
978 |
|
13-Nov-08 |
6.9% |
|
13-Oct-08 |
104.1 |
|
13-Oct-08 |
911 |
|
24-Nov-08 |
6.5% |
|
28-Oct-08 |
91.6 |
|
28-Oct-08 |
802 |
|
10-Mar-09 |
6.4% |
|
04-Jan-19 |
84.1 |
|
04-Jan-19 |
705 |
|
21-Nov-08 |
6.3% |
|
26-Aug-15 |
72.9 |
|
26-Aug-15 |
643 |
|
24-Jul-02 |
5.7% |
|
26-Mar-18 |
70.3 |
|
26-Mar-18 |
599 |
Source: Refinitiv data
“The caution is understandable, given the latest news on the COVID-19 outbreak, more downbeat commentary from companies, notably the airline industry, and growing concerns that central banks are running out of tools with which to support a highly-indebted global economy in the face of a sudden slowdown in activity.
“However, it makes sense from another perspective, too. Students of stock market history will note that nine of the S&P 500’s ten biggest single-day percentage gains were made during bear markets.
“The sole exception was 10 March 2009 which was the very first day of the eleven-year bull-run that has just ended. Investors don’t seem to be holding out much hope that we get a repeat this time, in the understandable view that such volatility is not the sign of a healthy market but an unstable one.”
|
S&P 500 bear markets since 1950 |
|||||
|
Start |
Finish |
Duration (days) |
Start |
Finish |
Decline |
|
03-Aug-56 |
22-Oct-57 |
445 |
50 |
39 |
(22.0%) |
|
13-Dec-61 |
26-Jun-62 |
195 |
73 |
52 |
(28.8%) |
|
14-Feb-66 |
07-Oct-66 |
235 |
94 |
73 |
(22.3%) |
|
29-Nov-68 |
26-May-70 |
543 |
108 |
69 |
(36.1%) |
|
11-Jan-73 |
04-Oct-74 |
631 |
120 |
62 |
(48.3%) |
|
28-Nov-80 |
12-Aug-82 |
622 |
141 |
102 |
(27.7%) |
|
25-Aug-87 |
19-Oct-87 |
55 |
337 |
225 |
(33.2%) |
|
16-Jul-90 |
11-Oct-90 |
87 |
369 |
295 |
(20.1%) |
|
24-Mar-00 |
09-Oct-02 |
929 |
1,527 |
777 |
(49.1%) |
|
09-Oct-07 |
09-Mar-09 |
517 |
1,565 |
677 |
(56.7%) |
|
19-Feb-20 |
13-Mar-20* |
23 |
3,386 |
2,711 |
(19.9%) |
|
Average** |
|
426 |
|
|
(34.4%) |
Source: Refinitiv data. * To date. **Excludes 2020 bear market.
