The S&P 500 Is on Track to Do Something That's Happened Only 4 Times in 85 Years -- and It Offers a Very Clear Message of What's Next for Stocks

An exceptionally rare (and sometimes scary) event for Wall Street's benchmark index paints a clear picture of what's to come for the stock market.

Apr 22, 2025 - 08:17

The S&P 500 Is on Track to Do Something That's Happened Only 4 Times in 85 Years -- and It Offers a Very Clear Message of What's Next for Stocks

For more than a century, the stock market has been the premier wealth-builder for investors. While real estate, Treasury bonds, and various commodities, such as gold, silver, and oil, have all risen in nominal value, none have come particularly close to rivaling the annualized return of stocks over the very long run.

But there's a price of admission that comes with this top-tier wealth creator: volatility.

Over the last two months, the iconic Dow Jones Industrial Average (DJINDICES: ^DJI) and broad-based S&P 500 (SNPINDEX: ^GSPC) have fallen into correction territory with double-digit percentage declines. Meanwhile, the innovation-driven Nasdaq Composite (NASDAQINDEX: ^IXIC) officially dipped into a bear market, as of the closing bell on April 8.