This week, the S&P 500 achieved a new record high, but mid-week setbacks resulted in the index’s first weekly loss in nearly a month. Ultimately, the index recorded a loss of 0.3% for the week. Below is a snapshot of the index’s performance over the past week:
The table below summarizes the number of record highs reached each year dating back to 2013.
Additionally, here’s a snapshot of the index over the past six months, featuring a 50-day moving average:
S&P 500: A Perspective on Drawdowns
On October 9, 2007, the S&P 500 reached an all-time high, closing at 1565.15. However, by March 9, 2009, the index had plummeted approximately 57% from that peak, closing at 676.53. This period is often referred to as the Global Financial Crisis. It took over five years for the index to recover, reaching a new high on March 28, 2013, closing at 1569.19. The chart below illustrates the record highs and selloffs since the 2007 peak:
Excluding the Global Financial Crisis, the chart below shows the same data starting from the trough on March 9, 2009. Note the recent selloffs in 2022:
Below are tables detailing the number of days with a 1% or greater change in either direction, as well as the number of days experiencing corrections (down 10% or more from the record high):
Here’s a linear chart of the index since October 9, 2007:
This is a linearly scaled version of the same chart, including the 50- and 200-day moving averages. The index has remained above the 50-day moving average since May 1st and above the 200-day moving average since May 12th. Notably, the 50-day moving average has been above the 200-day moving average since July 1st.
S&P 500: A Perspective on Volatility
To understand the correlation between closing prices and intraday volatility, the chart below overlays the S&P 500 since 2007 with the intraday price range. On April 9th, the index experienced its largest intraday price volatility (10.77%) since December 24th, 2018 (19.10%). The 20-day moving average is also included to help identify trends in volatility. Over the past 20 days, the average percent change from the intraday low to the intraday high is 0.69%.
S&P 500 versus S&P Equal Weight
The S&P 500 is a market cap-weighted index that includes approximately the 500 largest U.S. stocks across 11 sectors. In contrast, the S&P 500 Equal Weight Index consists of the same constituents but assigns each company an equal weight. How do these two indexes compare this year?
As of now, the S&P 500 is up 13.21% year-to-date, while the S&P Equal Weight index has increased by 8.03% in the same period.
ETFs associated with the S&P 500 include: iShares Core S&P 500 ETF (IVV), SPDR S&P 500 ETF Trust (SPY), Vanguard S&P 500 ETF (VOO), SPDR Portfolio S&P 500 ETF (SPLG), and Invesco S&P 500® Equal Weight ETF (RSP).
Originally published on Advisor Perspectives
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