A monthly drop of 10% or more in the S&P 500 is rare, occurring on average only about once every **7 to 10 years**. Over the last decade, there has been only one larger monthly drop: the **12.5% decline** in March 2020 during the onset of the COVID-19 pandemic. \[1, 2, 3\]
# Historical Context of 10% Monthly Drops [4]
While intra-year pullbacks (the difference between the highest and lowest point in a year) of 10% or more are common, seeing that entire drop concentrated within a single calendar month is historically significant. \[3, 5\]
* **Frequency**: Since 1928, the S&P 500 has experienced a 10%+ drop in roughly **3% of all months** evaluated.
* **Drawdowns vs. Monthly Returns**: While a "10% correction" happens roughly once per year on average, these are typically spread across several weeks or months. \[1, 3, 6\]
# Major Monthly Drops (Last 10 Years)
Aside from the current volatility, the last decade (2016–2026) has seen very few instances of double-digit monthly losses. \[1, 7\]
* **March 2020**: **-12.5%** (The largest in the last 10 years).
* **Current Month (March 2026)**: Roughly **-7.5% to -10%** depending on the specific starting point used for the month (the index opened at 6,881.62 on March 2nd and sat at 6,368.85 as of March 27th).
* **Notable Near-Misses**:
* **September 2022**: The market saw significant pressure but did not reach a full 10% decline within that single calendar month.
* **December 2018**: Experienced a sharp -9.2% decline, narrowly missing the 10% threshold. \[1, 7, 8, 9, 10, 11\]