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The S&P 500 Has Completed This Rare Feat 4 Times in 76 Years, and History Couldn't Be Clearer About What Comes Next for Stocks

newsfeedback@fool.com (Sean Williams)
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⚡ Quantum Brief
The S&P 500 achieved a rare feat in 2025—its fourth "slingshot year" since 1950—where it dropped over 15% intra-year but closed with double-digit gains, following 1982, 2009, and 2020. Historically, such rebounds preceded strong follow-up years, with average returns of 19% in 1983, 2010, and 2021, suggesting potential continued momentum if patterns hold. This rare recovery occurred amid unresolved macroeconomic headwinds, unlike past slingshots tied to post-crisis liquidity events, raising questions about sustainability. The Dow and Nasdaq also hit psychological milestones—50,000 and 24,000, respectively—amid record volatility, with 100+ 5% pullbacks since WWII. Geopolitical risks like the Iran war and Fed policy shifts could disrupt the trend, contrasting historical optimism with current uncertainty.
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By Sean Williams – Mar 29, 2026 at 9:06AM ESTKey PointsWall Street's major stock indexes have been making history with regularity since 2019, with the S&P 500 delivering two separate three-year stretches with annual gains of at least 16% (2019-2021 and 2023-2025).Although springboard bounce-backs in the S&P 500 are uncommon, history suggests this optimistic momentum carries into the following year.However, prior slingshot intra-year bounces have followed the end of liquidity/shock events -- and there's no clear indication that Wall Street has moved beyond its current headwinds. Investors might not realize it, but they've been witnessing history since 2019. Over the S&P 500's (^GSPC 1.67%) 98 years, it's delivered annual gains of at least 16% for three consecutive years on three occasions. Two of those three occurrences are recent (2019-2021 and 2023-2025). Following in the S&P 500's footsteps, we've watched the Dow Jones Industrial Average (^DJI 1.73%) and Nasdaq Composite (^IXIC 2.15%) each reach psychologically important plateaus: 50,000 for the Dow and 24,000 for the Nasdaq. Although history can't concretely predict the future, it does have a way of rhyming on Wall Street more often than not. That's what makes the latest rare feat for the benchmark S&P 500 all the more intriguing for investors. Image source: Getty Images. The stock market's benchmark index has done this only four times since 1950 Volatility is the price of admission to the greatest wealth creator on the planet.

Since World War II, there have been north of 100 pullbacks of at least 5% in the S&P 500. Roughly a quarter of these have turned into full-blown stock market corrections (10% or greater declines), and an eighth became bear markets (a decline of 20% or greater). Although stock market corrections and bear markets tend to be short-lived, it's uncommon for equities to rebound like a springboard from them. But every so often, this unique scenario takes shape on Wall Street, based on what history tells us. According to a social media post on X (formerly Twitter) by Carson Group's Chief Market Strategist, Ryan Detrick, the S&P 500 has had four years since 1950 when it's been down at least 15% intra-year and closed that same year higher by a double-digit percentage. Small sample size, yes.Still, last year saw the S&P 500 down more than 15% YTD at some point and finished the year up more than double digits. We called this a slingshot year.The other three times that happened (1982, 2009, and 2020) saw the following year up at least double... pic.twitter.com/k5qq0Ewcx4 -- Ryan Detrick, CMT (@RyanDetrick) March 25, 2026 Declines ranging from 15.3% to 30.8% were wiped away in 1982, 2009, 2020, and 2025, and replaced by year-end gains of 14.8% to 23.5%. What's noteworthy is how the S&P 500 responded in the year following these immaculate intra-year turnarounds. In 1983, 2010, and 2021, the benchmark index soared 17.3%, 12.8%, and 27.9%, respectively, for an average following-year return of 19%! To be objective, this is a relatively small data sample, and the previous turnarounds, in hindsight, all occurred after the worst of a major liquidity/shock event had passed. For instance, the 2009 bounce followed the end of the financial crisis, while the 2020 rebound marked the end of the five-week COVID-19 crash. Although the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite bounced back strongly from the mini-crash associated with the unveiling of President Donald Trump's tariff and trade policy in early April 2025, it's not clear if the proverbial storm has passed. For instance, the Iran war is stoking inflation fears and may end up being the catalyst that shifts the Federal Reserve's monetary policy from rate easing to rate hiking. This would be terrible news for a historically pricey stock market. But based solely on what 76 years of history have shown, springboard bounce-backs in the S&P 500 tend to continue through the following year. If this proves the case for a fourth consecutive time, patient investors should be all smiles nine months from now.Read NextMar 29, 2026 •By Sean WilliamsPrediction: The Trump Bull Market Is Coming to an End, and This Historically Flawless Forecasting Tool Will Be Correct, Yet AgainMar 29, 2026 •By Adria CiminoIs the Stock Market About to Crash? Here's What 100 Years of History SaysMar 29, 2026 •By Sean WilliamsIf You Think President Donald Trump and the Fed Are Feuding Now, Wait Until the Effects of the Iran War Hit the Inflation ReportMar 28, 2026 •By Johnny RiceStock Market Crash in 2026? The S&P 500 Sounds an Alarm as Recession Odds Just Hit Their Highest Level in Years. Here's What History Says Happens Next.Mar 28, 2026 •By Adam LevyShould the Current Stock Market Valuation Concern Investors? Here's What Billionaire Bill Ackman Thinks.Mar 28, 2026 •By Sean WilliamsDid Fed Chair Jerome Powell Throw President Donald Trump Under the Bus Concerning Inflation for a Second Straight FOMC Meeting?About the AuthorSean Williams is a data-driven Motley Fool contributing analyst who's been investing for 27 years and has penned north of 15,000 articles. You'll find him at the intersection of politics and investing tackling macroeconomic topics of interest (Social Security and Donald Trump's economic/tax policies), analyzing which stocks billionaire investors (e.g., Warren Buffett) are buying and selling, and digging into how the world's most-influential businesses and trends -- everything from the evolution of artificial intelligence (AI) to the next stock split -- are changing Wall Street. He holds a B.A. in Economics from the University of California, San Diego.TMFUltraLongX@AMCScamStocks MentionedS&P 500 IndexSNPINDEX: ^GSPC$6,368.85(-1.67%)-$108.31Dow Jones Industrial AverageDJINDICES: ^DJI$45,166.64(-1.73%)-$793.47NASDAQ Composite IndexNASDAQINDEX: ^IXIC$20,948.36(-2.15%)-$459.72*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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