What We’re Showing
This graphic shows the peak-to-tough drawdowns of the S&P 500 during U.S. recessions since 1970, based on data from Goldman Sachs.
Key Takeaways
- During the global financial crisis, the S&P 500 wiped out over half of its value, while the stock prices of Citigroup and AIG plummeted more than 90% due to their exposure to subprime loans
- Following the dot-com crash, several overvalued tech stocks plunged over 80% in value, including Amazon, Yahoo, and Qualcomm
- Both recessions during the 1980s were triggered by aggressive monetary policy tightening, with the effective federal funds rate peaking at 19%
