S&P 500 Enters 10% Correction; 21 Corrections Since 1980 Show 15.3% Gains Post-Correction

Recent analysis from Goldman Sachs indicates that since 1980, there have been 21 stock-market corrections of 10%. The returns over the following year varied based on whether these corrections coincided with a recession, with notably higher 12-month returns during nonrecessionary periods. Historical data shows that since World War II, the S&P 500 has experienced 48 total corrections of 10%, with only 12 of those leading to bear markets, representing approximately 25% of the time. Additionally, data from Dow Jones Market Data reveals that since 2008, the S&P 500 has averaged a gain of 15.3% one year after entering a correction, with an 86.7% success rate in rising during that period. Following a correction, the index typically gains an average of 1.6% one week later but tends to decline by 1.7% one month after. As of March 2025, the S&P 500 has officially entered a 10% correction, marking the 24th occurrence in the past 46 years, with historical data suggesting that stocks finished higher in 13 of the previous 23 years after similar corrections.