Stocks Take a Tumble in First Week of 2024 - What Does it Mean for the Rest of the Year?

Stocks fell in the first week of 2024, but one weak week doesn't necessarily mean the full year will be rough. Volatility is normal, with the average year seeing at least 7 corrections of 3% or more and 3 pullbacks of 5% or more according to historical data. Years with double-digit gains are often followed by further gains, though drawdowns are also common. The S&P 500 has been positive in 71% of years since 1946 and rebounds on average after annual drawdowns.