{
  "id": 18617908,
  "title": "The S&P 500 Just Fell More Than 4% in a Day From Near Its Record. Here's What Happened Next in 2 Similar Situations Since 1950.",
  "url": "https://urgent.news/2026/11/07/the-s-p-500-just-fell-more-than-4-in-a-day-from-near-its-record-heres",
  "topic": "finance",
  "section": "Finance & Markets",
  "published": "2026-11-07T02:23:02.000Z",
  "source": {
    "name": "Motley Fool",
    "slug": "motley-fool",
    "url": "https://www.fool.com/investing/2026/11/06/the-s-and-p-500-just-fell-more-than-4-in-a-day-from-near-its-record-here-s-what-happened-next-in-2-similar-situations-since-1950/?source=iedfolrf0000001"
  },
  "original_language": "en",
  "account": "On Thursday, November 5, the S&P 500 (^GSPC +0.31%) experienced its worst day since April 4, 2025, with the index falling 4.36% and ending at 7,353.73. This drop was particularly unusual as the index had closed the previous day at 7,688.62, just under 2% away from its record high set on October 6. The decline was primarily driven by tech shares, with chip stocks leading the downturn, falling the hardest among the group. Factors contributing to the market's decline included negative reports from two chipmakers and growing concerns about potential new regulations on artificial intelligence data centers following a midterm election. To analyze the rarity of this specific drop, I examined historical data from Yahoo Finance, finding that only two instances since 1950 had the S&P 500 declining 4% or more while the index was within 2% of a record close. These two instances were on September 26, 1955, and October 13, 1989. The 1955 drop occurred on the first trading day after President Dwight Eisenhower's heart attack, while the 1989 drop happened on a Friday the 13th, revolving around the inability to secure financing for the UAL labor-management buyout. Comparing these historical cases to Thursday's drop, the overall historical record shows that most of the large rebounds in the index followed much larger declines. This drop, starting near its record high, is relatively modest in comparison. The broader historical trend indicates that while most of the significant drops were followed by gains, the median gain over a year later was around 23%, with an even higher median gain of around 7% for cases starting within 5% of a record high. Despite this data, it would still be premature to predict a similar rebound for the S&P 500 after Thursday's drop, as the current valuation and market conditions differ significantly from those in the past.",
  "summary": "The only two close matches are 1955 and 1989. A year later, they were nothing alike.",
  "key_points": [
    "S&P 500 fell 4.36% on November 5, 2023, near record high",
    "Tech shares, especially chip stocks, led market decline",
    "Only two similar drops in S&P 500 since 1950"
  ],
  "editors_take": "The rare decline in tech shares near record highs signals how regulatory fears and sector-specific setbacks can disrupt market momentum despite historical trends favoring long-term recoveries.",
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}