October 22, 2008
All the gains collected over the past nine trading days went down the drain, as the S&P500 lost -6.10 percent, the DJIA fell -5.69 percent and the NASDAQ declined -4.77 percent. Despite some meaningful advances recently, however, the declines outnumbered gains by six days to three days. As a result, the indices returned to levels when closing prices fell seven days in a row.
The DJIA is approaching the rate of losses experienced in its drastic decline between September and November 1929. It lost -48 percent of its market value in those 49 trading days. While that was its deepest, concentrated decline, prices continued down for another 664 trading days, until July 8, 1932, when the bottom was hit at 41.22, a drop of -89 percent.
However, there is difference in the chronology between 1929 and the ongoing decline. Recent losses are more severe than at the beginning of the correction. Between October 2007, and May 2008, it took 262 trading days for the DJIA to fall -8.02 percent. Since then to today, in just 101 trading days, the loss accelerated to -34.6 percent.
DJIA -5.69 percent
NASDAQ -4.77 percent
S&P500 -6.10 percent