Market Pullbacks Are Uncomfortable, and Completely Normal

If recent market headlines have you feeling uneasy, you’re not alone. The S&P 500 has pulled back roughly 9% from its high so far in 2026, and other major US indexes have already crossed into official correction territory with the Nasdaq and Dow Jones Industrial Average having declined more than 10% from their recent peaks.

While market pullbacks can be unnerving, it’s important to remain level-headed and put the recent movements into context. Market declines aren’t a sign that something has broken. They’re a feature of investing, not a bug. 

Since 1950, the S&P 500 has experienced 73 separate pullbacks of 5% or more, 26 corrections of at least 10%, and 11 bear markets exceeding 20%. This means there’s a mild pullback just about every year on average, with corrections happening every 2-3 years, and a more severe bear market once every 6-7 years.

The recent downturn has felt more severe than normal due to the conflict in Iran, soaring oil prices, and other geopolitical headlines. However, the current drawdown for the S&P 500 remains within the normal range going back to 1990. The average intra-year drawdown over this period has been -14.1%, with a strong average return of 10.1% despite the year-by-year volatility.

It’s easy to fixate on the recent dip, but a two-year view of the S&P 500 tells a more encouraging story. Even with the current pullback, the index remains meaningfully higher than it was in early 2024, with a total return of more than 24% over the past couple years. (This timeframe includes the sharp tariff-induced drop from 2025 as well). 

Zooming out even further helps illustrate just how normal drawdowns can be. What looks like a jarring decline in the moment often becomes barely visible on a long-term chart.

Markets don’t go up in a straight line, but for patient investors they have consistently moved higher. Uncertainty is uncomfortable, but staying focused on your long-term goals rather than short-term headlines has historically been the right decision.

– The Aspire Wealth Team