S&P 500 From 2007 To 2009 Chart
Introduction
The S&P 500 is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is widely regarded as the best indicator of the overall performance of the U.S. stock market. The S&P 500 from 2007 to 2009 chart tells the story of one of the worst financial crises in modern history.
The Beginning
The chart begins in 2007, when the U.S. housing market was in a bubble that was about to burst. The S&P 500 was at an all-time high of 1,565.15 on October 9, 2007. This would be the last time the index would see such heights for years to come.
The Bursting Bubble
As the housing market collapsed in 2008, the S&P 500 began a long and painful decline. By the end of the year, the index had fallen to 903.25, a drop of more than 42% from its high in 2007. This was the largest annual decline in the index since 1937.
The Bailout
In an effort to stabilize the financial system, the U.S. government launched a massive bailout program in 2008. The Troubled Asset Relief Program (TARP) provided funds to banks and other financial institutions in an attempt to prevent a complete collapse of the financial system. While the bailout helped prevent a total meltdown, it did little to stop the decline of the stock market.
The Bottom
The S&P 500 finally hit bottom on March 9, 2009, when it reached a low of 676.53. This was a drop of more than 56% from its high in 2007. It was the lowest point the index had been at since the mid-1990s.
The Recovery
After hitting bottom, the S&P 500 began a slow and steady recovery. By the end of 2009, the index had climbed back to 1,115.10, a gain of more than 65% from its low point earlier in the year. The recovery continued in the years that followed, and by 2013, the index had surpassed its pre-crisis high of 1,565.15.
Conclusion
The S&P 500 from 2007 to 2009 chart tells the story of a financial crisis that rocked the world. The bursting of the housing bubble and the subsequent decline of the stock market had far-reaching consequences that are still being felt today. While the recovery has been slow and steady, the scars of the crisis remain. However, the resilience of the U.S. economy and the stock market has shown that even in the darkest of times, there is always hope for a brighter future.
