S&P 500 streak of no 1% drops reaches 52 trading days

The S&P 500 has now recorded 52 consecutive trading days without a decline of 1 percent or more, a duration that matches the previous streak which ended in July 2024, according to research from Global Markets Investor. If the index avoids another significant drop in the current session, this run will surpass the 74-trading-day record set in January 2020 to become the longest since that period.

Global Markets Investor highlighted that this resilience persists despite persistent headwinds, including elevated inflation, a Federal Reserve interest rate hike in September, and uncertainty surrounding midterm elections. The firm described the market's ability to absorb these pressures as a defining characteristic of the current environment.

Broad market breadth supports this trend. Global Markets Investor noted that the New York Stock Exchange has experienced 224 consecutive trading days without a session where declining stocks accounted for at least 80 percent of total trading volume. This represents the longest such streak since at least 1996, indicating that investors have avoided intense, broad-based selling for nearly a year while maintaining long positions in equities.

Corporate earnings are a primary driver of this investor confidence. S&P 500 third-quarter earnings growth is expected to reach 29.6 percent year over year. FactSet data indicates that if this figure materializes, it will mark the third consecutive quarter of growth exceeding 25 percent. It would also extend a run of eight straight quarters with double-digit percentage earnings growth.

Forward-looking estimates suggest continued momentum. Wall Street analysts are projecting fourth-quarter earnings growth of 28 percent. For the full year 2026, analysts predict year-over-year earnings growth of 32.7 percent, with earnings seen rising another 15.6 percent in 2027. These projections underscore the strong earnings outlook that continues to underpin market participation.