Chart of the Day - Friday, April 4, 2025

🏆 Today's Chart of the Day was shared by Dean Christians (@DeanChristians).
 

• Today was even worse than yesterday, with the S&P 500 dropping nearly -6%. The index has shed -10.5% over the past two sessions, marking its worst back-to-back decline since March 2020. 
   
• Dean points out that declines of this magnitude are extremely rare within two months of a record high. This has only been observed during some of the worst stock market crashes in history, including 1929, 1987, and 2020. 
   
• It would be foolish to draw a bold conclusion from a sample size of three. That said, $SPX has historically struggled over the next week, but six-month returns have never been negative. 
   

The Takeaway: The S&P 500 tumbled -10.5% in the final two days of the week. Declines of this magnitude are extremely rare within two months of an all-time. While history doesn't always repeat, this has only been observed during some of the worst stock market crashes, including 1929, 1987, and 2020.