Four-Day Declines and what History Says
Since the Reciprocal Tariffs announcement by Trump on 2/4/25, this was how the S&P 500 ended:
2/4/25 – 5670
3/4/25 – 5396
4/4/25 – 5074
7/4/25 – 5062
8/4/25 – 4983
a loss of 12.1% in the 4 days following the announcement and a drop of 19% from its peak of 6147 in Feb 2025.
Based on data collected by Creative Planning Chief Market Strategist Charlie Bilello, the S&P 500 has endured 15 Four-day Declines of 11.5% to 28.5% between 1950 and 2025. This period saw dramatic falls during the Black Monday crash of 1987, the Global Market Collapse of 2008, and the 2020 COVID pandemic crash. In these scenarios, the analyst worked out that the total returns (including dividends) of the S&P 500 at the one, three and five-year periods following each of these four-day declines were always higher than the total decline at the time.
Source: Yahoo Finance
2/4/25 – 5670
3/4/25 – 5396
4/4/25 – 5074
7/4/25 – 5062
8/4/25 – 4983
a loss of 12.1% in the 4 days following the announcement and a drop of 19% from its peak of 6147 in Feb 2025.
Based on data collected by Creative Planning Chief Market Strategist Charlie Bilello, the S&P 500 has endured 15 Four-day Declines of 11.5% to 28.5% between 1950 and 2025. This period saw dramatic falls during the Black Monday crash of 1987, the Global Market Collapse of 2008, and the 2020 COVID pandemic crash. In these scenarios, the analyst worked out that the total returns (including dividends) of the S&P 500 at the one, three and five-year periods following each of these four-day declines were always higher than the total decline at the time.
Source: Yahoo Finance