GITNUX MARKETDATA REPORT 2024

Statistics About The Average Stock Market Decline During Recession

The average stock market decline during a recession is typically around 30%.

Last Updated: June 18, 2024

How we write

In this post, we will explore a collection of key statistics related to stock market behavior during recessions. From historical market downturns to recovery periods, these data points shed light on the trends and patterns that emerge in times of economic instability. Let’s dive into the numbers to gain a deeper understanding of how the stock market has historically responded to recessions.

Statistic 1

"The average drop for the S&P 500 in a given 12-month period is about 14%."

Statistic 2

"The average length of a market correction is 71.6 trading days, which equates to about 14 calendar weeks."

Statistic 3

"The average stock market drop during the last 10 recessions was approximately 30%."

Statistic 4

"During the recession from late 2007 to mid-2009, the S&P 500 Index fell by approximately 57%."

Statistic 5

"The average recovery period after a market downturn due to a recession is approximately 3-4 years."

Statistic 6

"Seven out of the last 12 recessions have been accompanied by bear markets."

Statistic 7

"On average, stock market corrections fall 13% from recent highs and last 104 days."

Statistic 8

"The Great Depression saw a market downturn of nearly 90%."

Statistic 9

"The average bear market period lasted 1.4 years, with an average cumulative loss of 41%."

Statistic 10

"The longest bear market in history lasted from 1931 to 1942, resulting in an 86% loss for S&P and lasted 147 months."

Statistic 11

"The largest daily point drop of the Dow Jones occurred on March 16, 2020, amid the COVID-19 pandemic, plummeting around 13%."

Statistic 12

"On the average, common stocks have returned an average annual total return of around 10% since 1926."

Statistic 13

"Since 1945, there have been 14 recessions, in those, the S&P 500 averaged a 33% decline."

Statistic 14

"The average correction in the stock market since WWII has been 13% over four months."

Statistic 15

"The average decline in the stock market during midterm election years is -21%."

Statistic 16

"The average stock market return during recessions since 1900 is -16.4%."

In conclusion, historical statistics on stock market performance during recessions provide valuable insights into the nature and patterns of market downturns. The average stock market decline during recessions is significant, with drops ranging from 30% to as high as 90% during extreme events like the Great Depression. Market corrections and bear markets are common occurrences, often lasting for weeks to years, with varying degrees of loss. While the market has shown resilience and averaged positive returns over the long term, investors should be aware of the potential volatility and duration of downturns during economic recessions.

Jannik Lindner

Jannik is the Co-Founder of Gitnux and has been working in the digital space since 2016. He is specialized in content and tech.

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