S&P 500 Historical Returns: Every Year Since 1928

S&P 500 Average Annual Return

The S&P 500 has delivered an average annual return of approximately 10% per year since its inception in 1957 (or ~10.5% since the broader market index began tracking in 1928). After adjusting for inflation, the real return is closer to 7% annually.

These averages, however, mask enormous year-to-year variation. Understanding this volatility is essential for any long-term investor.

Best and Worst Years

Best Years

• 1954: +52.6%
• 1958: +43.4%
• 1995: +37.6%
• 2013: +32.4%
• 2019: +31.5%

Worst Years

• 1931: -47.1% (Great Depression)
• 2008: -37.0% (Financial Crisis)
• 1937: -35.0%
• 2002: -22.1% (Dot-com bust)
• 1974: -26.5% (Oil crisis)

Decade by Decade

• 1950s: +486% total (strong postwar growth)
• 1960s: +112% total
• 1970s: +76% total (inflation decade)
• 1980s: +400%+ total (Reagan bull market)
• 1990s: +431% total (tech boom)
• 2000s: -9% total (lost decade — two major crashes)
• 2010s: +374% total
• 2020-2026: Strong gains despite COVID crash in 2020

What This Means for Investors

The key lesson from a century of S&P 500 data: short-term results are unpredictable and volatile, but long-term returns have consistently rewarded patient investors. Every major crash — 1929, 1987, 2000, 2008, 2020 — eventually recovered and reached new highs.

This is why long-term index fund investors are advised to stay invested through downturns rather than trying to time the market.