The S&P 500 lost more than half its value between its 2007 peak and the March 2009 low during the global financial crisis.
The index reached a pre-crisis closing high of 1,565.15 on October 9, 2007. It then fell as the U.S. housing downturn damaged mortgage markets, banks, and the broader economy. The failure of Lehman Brothers in September 2008 accelerated the decline.
The S&P 500 reached a closing low of 676.53 on March 9, 2009, a drop of about 57% from its 2007 high. Because it includes 500 large U.S. companies across many industries, it is commonly used as a broad gauge of the U.S. stock market.
The index’s fall was part of a worldwide market decline, not an isolated movement in American shares. The recovery began in March 2009, although employment and economic output took longer to improve.