Compared to all other asset classes, nothing else comes close to matching the annualized return of stocks over the last century. But getting from Point A to B on Wall Street can often be a bumpy ride, as the last month has shown.
On Feb. 19, the iconic S&P 500 (SNPINDEX: ^GSPC) hit its all-time closing high. Since then, the Dow Jones Industrial Average (DJINDICES: ^DJI) and S&P 500 have both dipped into correction territory, while the growth-oriented Nasdaq Composite (NASDAQINDEX: ^IXIC) dipped into a full-fledged bear market.
While stock market corrections are common, what’s made the month of April so special is the velocity of the swings we’ve witnessed in all three indexes. On April 9, the Dow, S&P 500, and Nasdaq Composite all recorded their largest single-session point gains in their respective histories. Meanwhile, the S&P 500 endured a 10.5% two-day drop from the closing bell on April 2 through April 4, which marked its fifth-worst two-day decline in 75 years.