This created a domino-effect among banks and insurers. The credit crisis escalated into a full-blown financial crisis in 2008 with the collapse of the investment bank Bear Stearns, and worsened with the failure of Lehman Brothers in September of that year. This was followed by a five-year return of 109%, or an annual equivalent of 15.9%. The most severe was a 9.0% fall on 15 October 2008. The US stock market's ten worst days and their reboundsДЄ short history of the stock marketвЂ™s worst daysДЄs the table above shows, the pattern is repeated on many other of the ten worst one-day crashes.ДЇalls associated with the global financial crisis, including the eurozone debt crisis, account for seven of the ten worst days the US stock market has endured since 1989. But the data underlines the historic resilience of shares over longer timeframes, even following shocks. The returns are illustrative and do not include any costs or fees. Of course, past performance is not guaranteed to be repeated in the future. Given the abject mood at the time, investors may have struggled to believe that an investment of $10,000 made in the market at the start of that turbulent day would have grown to $26,400 within five years, before charges. That date was during a particularly gloomy phase of the 2008-09 financial crisis. That is an annualised return of 21% in the five years after a 6.7% fall for the S&P on 20 November 2008. Using the US stock market as an example, the past three decades show the strongest five-year rebound in the US brought a return of 164%. However, while the stock market has been quick to react, history shows it has a tendency to bounce back strongly over time. The severity of the disease and its long-term economic impacts are still yet to be seen. It is impossible to predict what may happen next. On the same day, UK stocks, as measured by the FTSE All-Share Index, fell sharply. Globally, stocks have endured some of their worst performances since the days of the financial crisis.ДЇor instance, the US stock market, as measured by the S&P 500, fell 7.6% in one day on 9 March 2020, its fifth worst trading day since 1988. Coronavirus concerns have swept through financial markets.

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