In the 2008 global stock-market crash, the S&P 500 lost 38.5% during the calendar year.
The S&P 500 began 2008 at a level near 1,468 and ended the year at 903.25, producing a calendar-year decline of approximately 38.5%. It was the index’s worst annual performance since 1937 and reflected the rapid spread of the global financial crisis.
The market turmoil intensified after the collapse of Lehman Brothers in September 2008. Problems tied to U.S. housing, mortgage-backed securities, bank funding, and confidence spread across financial markets. Equity prices fell sharply as investors reassessed corporate earnings and the stability of major financial institutions.
The 38.5% figure refers to the S&P 500’s full-year price performance. It is different from the index’s peak-to-trough decline during the broader bear market, which began in 2007 and continued into March 2009.