S&P 500 Jumps 16% in 2 Months, Echoing 1987 Before Crash

1 articles · Updated · The Motley Fool · Jun 6

More than 16% of S&P 500 gains came in just two months through May, a pace Deutsche Bank said has appeared only four times since World War II.
Three of those earlier surges followed recessions—the 1970s oil shock, the 2008 financial crisis and the Covid-19 downturn—but the current market is not emerging from a bear market, making 1987 the closer parallel.
In 1987, the S&P 500 had climbed about 39% in the prior year before the Dow Jones Industrial Average plunged nearly 22% in a single day.
The benchmark is already up 11.72% in 2026 after returns of 25.02% in 2024 and 17.88% in 2025, extending a multiyear rally that could leave stocks vulnerable to a near-term pullback.
The report stops short of urging investors to sell, but suggests money needed within five to 10 years may be safer outside stocks.