US stock markets tumble when hit by global recession, says report

The S&P500 had dropped to 3,667 on June 17 but has jumped 15 per cent in the past two months

The S&P 500 should fall a lot further to price in a US recession, if history is any guide. The US benchmark has slid 32 per cent on an average from a peak to a trough during the past eight recessions going back to 1969, based on a Bloomberg study.

Should the benchmark fall by a similar degree from the January high, the gauge would read 3,262, compared to around 4,200 as of Thursday close — that would imply a 22 per cent downside. The S&P500 had dropped to 3,667 on June 17 but has jumped 15 per