So, here we go. The S&P 500 index rose by 2.4% today and is on track for its best daily performance in 2024. The index is now up nearly 4% from yesterday’s low. This means that the S&P 500’s market capitalization has increased by $1.8 TRILLION compared to yesterday’s low. Meanwhile, the Nasdaq 100 index has gained nearly 1,000 points from yesterday’s low.

How has the S&P 500 historically performed after a 5% pullback? According to Goldman Sachs, since 1980, the S&P 500 has experienced 39 drops of roughly 5%. Afterward, the index has typically risen by +2% on average and showed positive returns about 70% of the time within one month after the drop. Six months after falling by 5%, the S&P 500 has risen by an average of +7% and was positive 85% of the time. Over a 12-month period after the pullback, the average return of the index was +11%, with the index ending up in the green about 75% of the time. Are you feeling the thrill of wild volatility, or did you get totally wrecked?