S&P 500 Shrugs Off 1% and 2% Daily Drops, Advisors Say Investors Can Too

Stocks are volatile, but big one-day declines happen more often than you think, according to market data analysis.

Published on Mar. 5, 2026

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The S&P 500 U.S. stock index has fallen 1% or more on 1,001 days over the past 30 years, and at least 2% on 313 days, according to a Morningstar Direct analysis. Financial advisors say investors should not be alarmed by these common market fluctuations and instead focus on long-term asset allocation and discipline.

Why it matters

Volatility is a normal part of the stock market, and big one-day drops, while unsettling, happen frequently. Understanding this context can help investors stay calm and avoid overreacting to short-term market shocks.

The details

The analysis found the S&P 500 has fallen 1% or more on about 33 days per year on average since 1996, and at least 2% on about 10 days per year. There have also been 21 days with drops of 5% or more, or about once every year and a half. Despite this volatility, the S&P 500 has risen 0.03% per day on average over the last 30 years, resulting in typical annual returns over 10%.

  • Since 1996, the S&P 500 has fallen 1% or more on 1,001 days.
  • Since 1996, the S&P 500 has fallen at least 2% on 313 days.
  • There have been 21 days with drops of 5% or more since 1996.

The players

Charlie Fitzgerald III

A certified financial planner based in Orlando and a founding member of Moisand Fitzgerald Tamayo, which ranked No. 69 on CNBC's 2025 Financial Advisor 100.

Scott Wren

Senior global market strategist at Wells Fargo Investment Institute.

Amy Arnott

A portfolio strategist at Morningstar.

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What they’re saying

“These little blips happen quite often. It's what stock markets do, and it's what they've done for 100 years.”

— Charlie Fitzgerald III, Certified Financial Planner (CNBC)

“We believe investors need to try and keep a clear head, look through the headlines, and stick to a well thought out plan. A diversified portfolio is one key to that plan.”

— Scott Wren, Senior Global Market Strategist (CNBC)

“Short-term shocks are difficult to predict and frequently followed by recoveries. Investors are better served by focusing on a sound, long-term asset allocation and staying disciplined rather than getting distracted by external events.”

— Amy Arnott, Portfolio Strategist (CNBC)

What’s next

Investors can take advantage of market declines by rebalancing their portfolios to get back to their target asset allocation, selling bonds to buy stocks when prices are lower.

The takeaway

While big one-day stock market drops can feel unsettling, they are a normal and common occurrence. Investors are better off staying disciplined and focused on long-term asset allocation rather than getting distracted by short-term volatility.