The top 7 Stock Market falls and recoveries since 1900

Introduction

 The stock market has always been a barometer of economic health and investor sentiment. Over the past century, it has experienced dramatic highs and devastating lows, reflecting the impact of various economic, political, and social events. In this blog, we will explore the top 7 stock market falls and their subsequent recoveries since 1900, using the FTSE All-Share and S&P 500 as reference points. By examining these significant events, we can gain insights into the resilience and volatility of financial markets and understand how they have rebounded from major crises.

 1. The Wall Street Crash of 1929 and Its Recovery

 The Wall Street Crash of 1929, also known as Black Tuesday, marked the beginning of the Great Depression. On October 24, 1929, the Dow Jones Industrial Average fell by 22% in a single day. The market began to recover in the early 1930s, and by 1936, the Dow had regained much of its lost ground, although it took until the 1950s for the market to fully recover to pre-crash levels

 2. The Black Monday Crash of 1987 and Its Recovery

 On October 19, 1987, the stock market experienced a sudden and severe crash, known as Black Monday. The Dow Jones Industrial Average plummeted by 22.6% in a single day. The market rebounded quickly, and within two years, the Dow had recovered all its losses. The S&P 500 continued to climb, driven by strong economic growth and technological advancements.

 3. The Dot-Com Bubble Burst of 2000 and Its Recovery

 The early 2000s saw the collapse of the dot-com bubble, which had been fuelled by speculative investments in internet-based companies. The Nasdaq Composite Index lost nearly 40% of its value over the course of the year 2000. The market began to recover in 2003, with the S&P 500 and Nasdaq seeing significant gains as investors regained confidence in technology stocks and the broader market.

 4. The Global Financial Crisis of 2008 and Its Recovery

 The 2008 financial crisis was triggered by the collapse of Lehman Brothers and the subprime mortgage crisis. From January to October 2008, major stock markets around the world fell by 30% to 50%. The recovery from this crisis was one of the most remarkable in history. By 2013, the S&P 500 had reached new all-time highs, driven by aggressive monetary policies, corporate earnings growth, and investor optimism.

 5. The COVID-19 Pandemic Crash of 2020 and Its Recovery

 In March 2020, global stock markets crashed as the COVID-19 pandemic spread rapidly, leading to widespread lockdowns and economic uncertainty. On March 12, 2020, the S&P 500 fell by 10%, marking its worst day since 1987. The market rebounded swiftly, and by the end of 2020, the S&P 500 had recovered all of its losses and continued to reach new highs in 2021, fuelled by unprecedented fiscal and monetary stimulus.

 6. The Trump Tariffs Crash of 2025 (and Its Recovery???)

 The current market falls triggered by Trump's tariffs have indeed made it to the list. In March and April 2025, global stock markets experienced significant declines as a result of steep tariffs imposed by the Trump administration. There are no clear signs of recovery quite yet with economists predicting more challenging times ahead...  but give it time…

 7. The Market Crash of 2022 and Its Recovery

 The market crash of 2021 was spurred by the Russia-Ukraine war, intense inflation, and supply chain disruptions. The S&P 500 experienced a significant decline, but the market began to recover within 18 months. By mid-2023, the S&P 500 had regained its losses and continued to climb, driven by improved economic conditions and investor confidence.

 Summary

 The history of stock market crashes and recoveries is a testament to the market's inherent volatility and resilience. From the Wall Street Crash of 1929, which marked the beginning of the Great Depression, to the Black Monday Crash of 1987, the Dot-Com Bubble Burst of 2000, and the Global Financial Crisis of 2008, each event had a profound impact on the global economy. More recently, the COVID-19 pandemic and the market turmoil triggered by Trump's tariffs in 2025 have shown how external factors can lead to significant market declines. However, the subsequent recoveries, driven by economic policies, technological advancements, and investor optimism, highlight the market's ability to bounce back and reach new heights.

 The stock market's history of falls and recoveries underscores the importance of understanding the factors that drive market movements. While crashes can lead to significant economic hardship, they also present opportunities for growth and recovery. By learning from past events, investors can better navigate the complexities of the market and make informed decisions. The resilience of financial markets, as demonstrated by their ability to recover from major declines, offers a hopeful perspective for the future, even in the face of uncertainty.

 If you are worried about the current investment markets, please get in touch via the button below.