Dec Stock Market

The stock market is on pace for its worst December since the Great Depression

Michael Sheetz

Two benchmark U.S. stock indexes are careening toward a historically bad December.

Both the Dow Jones Industrial Average and the S&P 500 are on pace for their worst December performance since 1931, when stocks were battered during the Great Depression. The Dow and S&P 500 are down 7.8 percent and 7.6 percent this month, respectively.

Top 10 worst S&P 500 December performances

*on pace

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

1931

-14.5%

*2018

-7.8%

2002

-6.0%

1937

-5.0%

1941

-4.7%

1968

-4.2%

1957

-4.1%

1980

-3.4%

1981

-3.0%

1986

-2.8%

Chart: Michael Sheetz  Get the data  Created with Datawrapper

Top 10 worst Dow December performances

*on pace

-16.0%

-14.0%

-12.0%

-10.0%

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

1931

-17.0%

*2018

-7.6%

2002

-6.2%

1968

-4.2%

1941

-3.2%

1957

-3.1%

1980

-2.9%

1937

-2.1%

1936

-1.8%

2015

-1.7%

Chart: Michael Sheetz  Get the data  Created with Datawrapper

December is typically a very positive month for markets. The Dow has only fallen during 25 Decembers going back to 1931.

The S&P 500 averages a 1.6 percent gain for December, making it typically the best month for the market, according to the Stock Trader’s Almanac.

While the S&P 500 began dissemination in 1950, the performance data was backtested through 1928. It’s worth noting that historically, the second half of December tends to see gains.