Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube

  How The S&P 500 Index Has Performed Since Its 2018 Closing Low On 2/8
Posted Under: Broader Stock Market

View from the Observation Deck
  1. The stock market just experienced its first correction (price decline of 10% or more) since 2015-2016. 
  2. That correction stretched from 5/21/15 through 2/11/16, or 266 days, according to data from Bloomberg. The S&P 500 Index posted a total return of -12.81% over that period. It took 151 days to fully recover. 
  3. The correction we just witnessed was quite quick. It lasted from 1/26/18 through 2/8/18, or 13 days. The S&P 500 Index posted a total return of -10.10% over that period. Technically, it is not over because the index has not fully recovered the losses sustained in the sell-off. 
  4. As of 2/26/18, the index had rebounded 7.84% from its 2018 low established on 2/8/18 (see chart). Investors have favored Information Technology and Financials, which currently carry the largest weightings in the S&P 500 Index at 24.97% and 15.01%, respectively, according to Bloomberg.
  5. In the 13 day correction (1/26/18-2/8/18), the 11 major sectors that comprise the index posted the following total returns (not shown in chart) : Energy (-13.97%); Health Care (-11.64%); Information Technology (-10.57%); Materials (-10.39%); Financials (-10.04%); Industrials (-9.45%); Consumer Staples (-8.84%); Real Estate (-8.65%); Telecommunication Services (-8.23%); Consumer Discretionary (-8.16%); and Utilities (-6.90%), according to Bloomberg. 
  6. While no one knows for sure where the stock market will trend in the near-term, this correction could still represent a buying opportunity for equity investors when you factor in the strength of the economy and rising corporate earnings, in our opinion. 

This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance, while the 11 major S&P 500 Sector Indices are capitalization-weighted and comprised of S&P 500 constituents representing a specific sector.

Download a PDF of this post, please click here.
Posted on Tuesday, February 27, 2018 @ 2:19 PM • Post Link Share: 
Print this post Printer Friendly

These posts were prepared by First Trust Advisors L. P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
Market Commentary and Analysis
Market Commentary Video
Weekly Market Commentary
Weekly Market Watch
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email

US Stocks Ended Feb. 23, 2018
US Economy and Credit Markets Ended Feb. 23, 2018
Rising Interest Rates and Stock Performance
A Snapshot of Moving Averages
US Stocks Ended Feb. 16, 2018
US Economy and Credit Markets Ended Feb. 16, 2018
A Snapshot of Volatility and Stocks
Some Investors Have Lost That Lovin' Feeling
A Snapshot of Bond Valuations
US Stocks Ended Feb. 9, 2018
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial advisors are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA.
First Trust Advisors L.P.
Home |  Important Legal Information |  Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2020 All rights reserved.