Every Major Nasdaq Drawdown Since 1985
| Event | Start | End | Depth | Duration | Recovery | Severity Score |
|---|---|---|---|---|---|---|
| Black Monday | Aug 1987 | Dec 1987 | ~-33% | ~100 days | ~2 years | ~10.0 |
| Early 1990s Recession | Jul 1990 | Oct 1990 | ~-24% | ~90 days | ~5 months | ~6.5 |
| Oct 1997 Mini-Crash (Asian Crisis) | Oct 1997 | Oct 1997 | ~-12% | ~20 days | ~2 months | ~3.2 |
| LTCM / Russian Crisis | Jul 1998 | Oct 1998 | ~-29% | ~80 days | ~1 month | ~7.6 |
| Dot-Com Crash | Mar 2000 | Oct 2002 | -77.9% | ~945 days | ~12.5 years | 12.0+ |
| Great Financial Crisis | Oct 2007 | Mar 2009 | -55.8% | ~495 days | ~3 years | 12.0+ |
| 2010 Flash Crash / Euro Scare* | Apr 2010 | Jul 2010 | ~-17% | ~70 days | ~4 months | ~4.6 |
| 2011 EU Debt Crisis* | Apr 2011 | Oct 2011 | ~-18% | ~157 days | ~6 months | ~4.9 |
| 2015-2016 Selloff | Jul 2015 | Feb 2016 | ~-18% | ~215 days | ~5 months | ~4.9 |
| Feb 2018 Volmageddon | Jan 2018 | Feb 2018 | ~-10% | 13 days | ~6 months | ~3.3 |
| Late 2018 Selloff | Aug 2018 | Dec 2018 | -21.9% | ~117 days | ~5 months | 6.0 |
| COVID Crash | Feb 2020 | Mar 2020 | -30.3% | ~33 days | ~2.5 months | 9.5 |
| 2022 Bear Market | Nov 2021 | Dec 2022 | -36.4% | ~404 days | ~1.9 years | 10.2 |
| 2023 Rate-Spike Pullback* | Jul 2023 | Oct 2023 | ~-13% | ~85 days | ~2 months | ~3.6 |
| 2025 Tariff Selloff | Dec 2024 | Apr 2025 | ~-24.3% | ~113 days | ~2.5 months | ~6.8 |
Conventions: Depth is the peak-to-trough decline on closing prices of the Nasdaq Composite index. Duration is the approximate number of calendar days from the peak to the trough. Recovery is measured from the trough until the index closed above the prior peak again (not from the peak). Values marked "~" are approximations compiled from public Nasdaq Composite price-index records, since precise daily closing data for the index's earlier history is less consistently available than for the S&P 500.
* The 2010 and 2011 declines began from post-crisis recovery highs rather than all-time highs; depth is measured from that interim peak. The dot-com crash, Great Financial Crisis, late-2018 selloff, COVID crash, 2022 bear market, and 2025 tariff selloff figures are based on widely-reported closing index levels; other rows are rounded estimates. Severity scores are retroactive estimates using DrawdownAlerts' methodology and are not directly comparable across eras, because each asset's historical baseline evolves over time.
Key Observations
- -The dot-com crash was the defining Nasdaq drawdown, a 77.9% peak-to-trough decline that took about 12.5 years from the October 2002 trough to a new all-time closing high in April 2015 — far longer than any S&P 500 recovery in this dataset.
- -The Nasdaq has crossed the 20% bear-market threshold more often than the S&P 500, a reflection of its concentration in higher-beta technology stocks, which tend to amplify both market declines and recoveries.
- -Recent bear markets have recovered faster than the older ones: the 2025 tariff selloff and the 2020 COVID crash each took only about 2.5 months from trough to new high, versus multi-year recoveries for the dot-com crash and the Great Financial Crisis.
- -The 2022 bear market (-36.4%) was deeper than the 2022 S&P 500 decline (-25.4%), consistent with the Nasdaq's pattern of larger swings in both directions during broad market selloffs.
How to Read This Table
Event: The commonly used name for the drawdown or the economic/market event that triggered it.
Start: The approximate month the Nasdaq Composite began declining from its prior peak (an all-time high for most events; a post-crisis recovery high for the rows marked *).
End: The approximate month the Nasdaq Composite reached the trough (lowest point) of the drawdown.
Depth: The maximum percentage decline from the peak to the trough. A depth of -77.9% means the index lost more than three-quarters of its value.
Duration: The approximate number of calendar days from the start of the decline to the trough.
Recovery: The time from the trough until the Nasdaq Composite closed above the prior peak again. Note this is measured from the trough, not from the peak; measured from the peak, recoveries take the duration plus this figure.
Severity Score: An estimated Drawdown Severity Score based on DrawdownAlerts' methodology, which considers both depth and duration relative to historical norms. Higher scores indicate more extreme, statistically rare drawdowns.
Frequently Asked Questions
What is the worst Nasdaq drawdown since 1985?
The worst Nasdaq drawdown since 1985 was the dot-com crash of 2000-2002, when the Nasdaq Composite fell 77.9% from its March 10, 2000 closing peak of 5,048.62 to its October 2002 trough. Measured from the trough, the index took roughly 12.5 years to close at a new all-time high, finally surpassing its dot-com peak on April 23, 2015. The Great Financial Crisis of 2007-2009 was the second-worst, with a 55.8% decline from its October 2007 peak to its March 2009 trough.
How often does the Nasdaq have a 20% drawdown?
Since 1985, the Nasdaq Composite has experienced drawdowns of 20% or greater roughly seven times, more often than the S&P 500: Black Monday (1987), the dot-com crash (2000-2002, -77.9%), the Great Financial Crisis (2007-2009, -55.8%), the late-2018 selloff (-21.9%), the COVID crash (2020, -30.3%), the 2022 bear market (-36.4%), and the 2025 tariff selloff (~-24%). This higher frequency reflects the index's heavier concentration in higher-beta technology stocks.
How long does it take the Nasdaq to recover from a drawdown?
Recovery time varies dramatically with the depth of the drawdown, and the Nasdaq has historically taken longer to recover from its deepest drawdowns than the S&P 500. The dot-com crash took about 12.5 years from the October 2002 trough to a new closing high in April 2015. The 2022 bear market took about 1.9 years from its December 2022 trough to a new all-time high in November 2024. By contrast, the COVID crash of 2020 and the 2025 tariff selloff each recovered in roughly 2.5 months, among the fastest rebounds in this dataset. View the current Nasdaq-100 (QQQ) drawdown status.
Data based on Nasdaq Composite daily closing prices. Drawdown Severity Scores are estimated using DrawdownAlerts' methodology. Dates are approximate.
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