Annual Returns and Pullbacks

Annual Returns and Pullbacks

March 31, 2026

This chart shows the annual returns and largest intra-year decline for the S&P 500 price index. The largest intra-year decline is measured as the steepest peak-to-trough decline for the index during the calendar year. 

Talking Points
  • This chart shows the performance of the stock market (bars) and the largest intra-year decline (dots) each year.
  • The average year sees a stock market drop of -13.5%. However, most years still end in positive territory, averaging 9% gains.
  • Volatility is a normal part of investing and investors are often rewarded for staying disciplined through short-term volatility.

The Standard & Poor’s 500 Index (SPX) is a capitalization-weighted index of 500 stocks designed to measure performance of the broad domestic economy through changes in the aggregate market value of 500 stocks representing all major industries.