Just How Bad is the Stock Market’s Current Sell-Off? | Global News Avenue

U.S. stocks were the worst day of a bad year on Monday as investors entered safe haven assets due to growing concerns about recession.

S&P 500 fell 2.7% on MondayThis is the biggest one-day decline since December. The index only begins in the current bull market, which begins at the end of 2022: December 18, 2024when the Federal Reserve Reduce its speed predictionand August 5, 2024,when Relax the popular leverage trade A brief sank of US stocks.

He has been particularly punished in the last six days. The S&P 500 fell nearly 1.8% last Monday when President Trump confirmed that 25% tariffs on Canadian and Mexico imports would take effect the next day. Five days after that, despite Trump again, stocks fell by another 4%. Partially delayed these tariffs. The S&P 500 fell 5.7% last Monday to today, the index’s worst six days since September 2022.

The president’s comments made the stock rattle. Trump is interviewed Fox News It aired Sunday, declining to say whether he hopes the U.S. will enter a recession this year. Instead, he said the economy will go through a “transitional period” as his tariffs take effect. Comments responded to his Speech to Congress last weekhe said “a little distracting, but we agree with that.”

Is the S&P 500 corrected in the store?

There have been 340 trading days since the S&P 500 last corrected, which is an unusually long time. According to LPL Financial’s research, the average time between S&P 500s since 1929 correct It’s about 173 days.

Monday’s sell-off puts the S&P 500 closer to correction than any other pullback last year. During the August downturn, stocks fell about 8.4% from peak to valley, and in the December pullback, stocks retreated about 4%. The S&P 500 fell 8.6% from its all-time high three weeks ago due to Monday’s losses.

However, the recent downturn is a much lower drop than the last correction effort, which is underway for three months between July 31 and October 27, 2023. At that time, the S&P 500 fell 10.3%. However, this is a brief correction. The index rebounded on October 30 (the next trading day) and resumed its bull run.