Every Major S&P 500 Drawdown Since 1985
| Event | Start | End | Depth | Duration | Recovery | Severity Score |
|---|---|---|---|---|---|---|
| Black Monday | Aug 1987 | Dec 1987 | -33.5% | ~100 days | ~20 months | 11.0 |
| Early 1990s Recession | Jul 1990 | Oct 1990 | -19.9% | ~87 days | ~4 months | 5.5 |
| Oct 1997 Mini-Crash (Asian Crisis) | Oct 1997 | Oct 1997 | ~-10.8% | ~20 days | ~6 weeks | ~2.9 |
| LTCM / Russian Crisis | Jul 1998 | Aug 1998 | -19.3% | ~45 days | ~3 months | 5.2 |
| Summer 1999 Correction | Jul 1999 | Oct 1999 | ~-12.1% | ~91 days | ~1 month | ~3.3 |
| Dot-Com Crash | Mar 2000 | Oct 2002 | -49.1% | ~929 days | ~4.6 years | 12.0+ |
| Great Financial Crisis | Oct 2007 | Mar 2009 | -56.8% | ~517 days | ~4 years | 12.0+ |
| 2010 Flash Crash / Euro Scare* | Apr 2010 | Jul 2010 | ~-16.0% | ~70 days | ~4 months | ~4.4 |
| 2011 EU Debt Crisis* | Apr 2011 | Oct 2011 | -19.4% | ~157 days | ~6 months | 5.3 |
| 2015-2016 Selloff | May 2015 | Feb 2016 | -14.2% | ~282 days | ~5 months | 3.8 |
| Feb 2018 Volmageddon | Jan 2018 | Feb 2018 | -10.1% | 13 days | ~6 months | 3.4 |
| Late 2018 Selloff | Sep 2018 | Dec 2018 | -19.8% | ~95 days | ~4 months | 5.4 |
| COVID Crash | Feb 2020 | Mar 2020 | -33.9% | ~33 days | ~5 months | 10.5 |
| 2022 Bear Market | Jan 2022 | Oct 2022 | -25.4% | ~282 days | ~14 months | 7.2 |
| 2023 Rate-Spike Pullback* | Jul 2023 | Oct 2023 | -10.0% | 88 days | ~1 month | 3.9 |
| 2025 Tariff Selloff | Feb 2025 | Apr 2025 | -18.8% | 48 days | ~2.5 months | 6.2 |
Conventions: Depth is the peak-to-trough decline on closing prices. 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 from public S&P 500 price-index records.
* The 2010, 2011, and 2023 declines began from post-crisis recovery highs rather than all-time highs; depth is measured from that interim peak. Figures for the Feb 2018, 2023, and 2025 rows are computed from our dividend-adjusted SPY dataset, and their severity scores are the values our system computed at each trough. Severity scores for earlier events are retroactive estimates and are not directly comparable, because each asset's historical baseline evolves over time.
Note: The 9/11 attacks (September 2001) occurred within the broader Dot-Com Crash of 2000-2002 and are not listed as a separate drawdown event.
Key Observations
- -Recovery from 20%+ drawdowns has ranged from about 5 months (COVID, 2020) to about 4.6 years (Dot-Com), measured from the trough to a new all-time closing high, depending on the economic backdrop and policy response.
- -The deepest drawdowns (2000, 2008) had severity scores above 12, reflecting both the extreme depth and prolonged duration of those declines.
- -The COVID crash was the fastest recovery from a 30%+ drawdown in this dataset. The S&P 500 fell 33.9% in just 23 trading days and recovered to new all-time highs within 5 months, fueled by unprecedented fiscal and monetary stimulus.
- -Drawdowns of 10-20% from a prior high have occurred roughly once every 3-4 years since 1985, and secondary 10% declines inside larger bear markets make double-digit pullbacks even more common. They are a normal part of equity investing, and knowing this helps investors stay disciplined rather than panic.
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 S&P 500 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 S&P 500 reached the trough (lowest point) of the drawdown.
Depth: The maximum percentage decline from the peak to the trough. A depth of -56.8% means the index lost more than half 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 S&P 500 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 S&P 500 drawdown since 1985?
The worst S&P 500 drawdown since 1985 was the Great Financial Crisis of 2007-2009, which saw the index fall 56.8% from its October 2007 peak to its March 2009 trough. Measured from the trough, the index took approximately 4 years to close at a new all-time high (March 2013). The Dot-Com Crash of 2000-2002 was the second-worst, with a 49.1% decline; the index needed about 4.6 years from the October 2002 trough to set a new high in May 2007.
How often does the S&P 500 have a 20% drawdown?
Since 1985, the S&P 500 has experienced drawdowns of 20% or greater five times, roughly once every 8 years on average: Black Monday (1987, -33.5%), the Dot-Com Crash (2000, -49.1%), the Great Financial Crisis (2007, -56.8%), the COVID Crash (2020, -33.9%), and the 2022 Bear Market (-25.4%). Drawdowns of 10-20% from a prior high have occurred roughly once every 3-4 years, with the February 2018, late 2018, 2023, and 2025 episodes the most recent examples.
How long does it take the S&P 500 to recover from a drawdown?
Recovery time varies dramatically with the depth of the drawdown. Measured from the trough to a new high, moderate drawdowns of 10-20% have historically recovered within about 1 to 6 months. The COVID Crash of 2020, despite being a 33.9% decline, recovered in about 5 months, the fastest recovery from a 30%+ drawdown in this dataset. The deepest drawdowns took far longer: about 4.6 years for the Dot-Com Crash and about 4 years for the Great Financial Crisis (roughly 5.5 to 7 years if measured from the prior peak instead of the trough). View the current S&P 500 (SPY) drawdown status.
Data based on S&P 500 daily closing prices. Drawdown Severity Scores are estimated using DrawdownAlerts' methodology. Dates are approximate.
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