There’s good news and bad news about the S & P 500 ‘s recent fall from glory, which at one point on Tuesday pulled the index 10% below its all-time high. First, the bad news: Data shows the drop has happened at an unusually fast clip. Now, the good news: Situations like this have historically gave way to a rebound. This rout marks only the 17th time going back to 1953 that the S & P 500 has fallen at least 7.5% from an all-time high in three weeks or less, according to data from Bespoke Investment Group. This time, the sell-off has been driven in large part by mounting uncertainty around President Donald Trump ‘s tariff policies. “Every time is different, and the tariff hammer that seems to come out every time the market attempts to rally is making for a difficult market environment,” Bespoke said. .SPX 1M mountain S & P 500, 1-month In the past 16 situations, the market was higher on average when looking at one week, month, three months, six months and a year following the decline of at least 7.5% from all-time highs. One year later, the market had rebounded more than 13% on average and was in the green 69% of the time. Outcomes can vary widely. During a drawdown in 2000, the market went on to tumble another 12.8% in the year following. But after a sharp pullback in 2020, the index went on to surge more than 43% over the next 12 months. “If the last 16 occurrences have taught us anything, it’s that the market at the very least attempted a bounce in the weeks and months after prior sharp pullbacks from record highs,” Bespoke said. Here’s how the index has historically moved following a sharp leg down from record levels:
