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Wednesday’s big slide in the S&P 500 snapped a 47-session streak in which the benchmark U.S. stock index did not suffer a drop of more than 1%.
The S&P 500 fell by 1.4%, as investors reacted negatively to news showing a strong rise in private-sector payrolls and a downgrade of the U.S. credit rating.
According to data provider Toggle AI, there have been 10 times since 2005 that the market did not fall by 1% for a period of between 45 and 50 days.
It’s usually good news after: the typical performance was a one-month gain of 1.2%, a six-month rise of 4.4% and a 12-month rise of 10%.
Over 12 months, the market was higher 90% of the time, with the only loss being a 1% decline, and the best performance being a gain of 17%.
The S&P 500
SPX
has already gained 18% this year. And even the top end of Wall Street’s increasingly bullish forecasts is 4,900, which would represent a 9% increase.
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