The biggest correction (peak-to-trough decline) in the history of the S&P 500 (SPY) was during the Great Depression, followed by major bear markets such as the 2008 Financial Crisis and the Dot-Com Bubble.
Biggest S&P 500 (SPY) Corrections from a Relative Top
| Rank | Event | Peak Date | Trough Date | Decline (%) | Duration |
|---|---|---|---|---|---|
| 1?? Great Depression | Stock Market Crash | Sep 1929 | Jun 1932 | -86.2% | ~2.8 years |
| 2?? 2008 Financial Crisis | Subprime Mortgage Crash | Oct 2007 | Mar 2009 | -56.8% | ~1.5 years |
| 3?? Dot-Com Bubble | Tech Stock Crash | Mar 2000 | Oct 2002 | -49.1% | ~2.5 years |
| 4?? COVID-19 Crash | Pandemic Lockdowns | Feb 2020 | Mar 2020 | -33.9% | ~1 month |
| 5?? 1973-74 Stagflation Crisis | Oil Shock & Inflation | Jan 1973 | Oct 1974 | -48.2% | ~1.8 years |
Biggest Drops for SPY (ETF Form of S&P 500)
SPY, the ETF tracking the S&P 500, was created in 1993, so its biggest drop was during the 2008 crash:
- SPY Peak (Oct 2007): ~$157
- SPY Trough (Mar 2009): ~$67
- Total Drop: ~-57%
Takeaways
- The Great Depression (1929-1932) remains the worst long-term decline in U.S. stock market history (-86%).
- The 2008 Financial Crisis was the worst drop for modern investors (-57%).
- The COVID-19 Crash (2020)was the fastest drop in history but also had a rapid recovery.
