What would happen if the stock market crashed today?

Nobody can say, and this page does not try. It shows what happened in past crashes, which rules pause trading when prices fall fast, and what stays the same. Every figure below has a linked source and a date.

Last updated 3 November 2026

The worst single day on record: 19 October 1987

On Black Monday, 19 October 1987, the Dow Jones Industrial Average fell 508 points, or 22.6% (Federal Reserve History). Measured on closing levels, the S&P 500 fell 20.5% that day (daily closes). The Federal Reserve notes that US stocks took less than two years to climb back above their pre-crash highs.

What stops trading: circuit breakers

US exchanges have a rule that pauses trading market-wide. It measures the S&P 500 against the previous day's close. A fall of 7% is Level 1, 13% is Level 2 and 20% is Level 3 (NYSE Rule 7.12). The Level 1 and Level 2 halts last 15 minutes, and a Level 3 fall closes trading for the day.

The 7% halt triggered four times in March 2020: on 9, 12, 16 and 18 March (SEC filing). The S&P 500 closed down 7.6%, 9.5%, 12.0% and 5.2% on those days (daily closes). The 13% and 20% levels were not reached in those weeks.

How long recoveries took

The S&P 500 price index, peak to trough to a new closing high, using daily closes (source; data to 2 November 2026; dividends not counted):

1987: peak 25 August 1987, fell 33.5% to 4 December 1987, regained the peak on 26 July 1989. About 23 months.
2000: peak 24 March 2000, fell 49.1% to 9 October 2002, regained the peak on 30 May 2007. About 7 years.
2007: peak 9 October 2007, fell 56.8% to 9 March 2009, regained the peak on 28 March 2013. About 5 years 5 months.
2020: peak 19 February 2020, fell 33.9% to 23 March 2020, regained the peak on 18 August 2020. About 6 months.

The four recoveries ran from six months to seven years, so "how long does it take" has no single answer, and none of them sets a date for the next one.

Times the exchange closed

1914: the NYSE shut on 31 July 1914 as the First World War began. Bond trading resumed on 28 November and stock trading on 12 December 1914, close to four and a half months in total (History.com).
2001: after the 11 September attacks the NYSE stayed closed for four trading sessions and reopened on Monday 17 September 2001 (Federal Reserve History; SEC). The S&P 500 closed down 4.9% that day (daily closes).

What happens to your shares

After a crash the price is lower, but the share count is the same. Shares are still recorded in your name or your broker's records, and the number does not change. Separately, if a US broker fails, SIPC can advance up to $500,000 per customer, including up to $250,000 for cash. SIPC states it does not protect market losses (SIPC). In Australia, shares sit under your holder identification number on the ASX CHESS register, or with the company's registry, and a broker's failure does not change the legal owner (ASX). More on broker failure on the bankruptcy page.

What this does not tell you

Four crashes are a small sample. Each had a different cause, and a different market could behave differently. These figures describe the past. They are not a forecast.

Questions

Can the US stock market close if it falls too fast?

Yes, for a short time. NYSE Rule 7.12 halts trading across US exchanges if the S&P 500 falls 7%, 13% or 20% from the previous close. In March 2020 the 7% halt triggered four times, on 9, 12, 16 and 18 March. Trading resumed each time.

Do I lose my shares if the market crashes?

No. A crash lowers what the shares are worth. You still own the same number of shares. SIPC, the US broker-failure fund, says it does not protect against market losses.

How long did past crashes take to recover?

Measured on the S&P 500 price index, from the old peak to a new closing high: about 23 months after 1987, about 6 months after 2020, about 5 years 5 months after 2007, and about 7 years after 2000. Dividends are not counted. These are past events, not a forecast.

Where Tickfloor fits

Tickfloor scores the chart of any stock out of 10 from ten common chart checks. The score describes what the chart looks like today. It does not predict a crash, and it cannot tell you when one is coming. We also publish our failed tests: we backtested 1,342 chart-based strategies and none passed the luck check (0 of 1,774 tests; in-sample, not a promise). The full list is on the evidence page, and you can score a stock free.

Sources

General information, not personal advice. Tickfloor does not hold a financial services licence.