Tuesday, February 25, 2020

What's Next After Yesterday's Market Slide

Yesterday was a bloodbath for the market, with the Dow Jones Industrial Average dropping by 1000 points for only the third time in its history. All the major indices slid more than 3 percent, but if history is any indication, today might prove to be a different story entirely.

According to Bespoke Investment Group, yesterday was the 19th time the S&P 500 has shed more than 2 percent on a Monday, going back to March 2009. In the prior instances, the index has, on average, returned 1.02 percent the next day.

Bespoke found that in 17 out of the 18 prior instances the S&P 500 also had a positive return over the subsequent week, with an average gain of 3.16 percent. Over the next month, there was an average gain of 6.08 percent.

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