February saw a slowdown in price growth, as highlighted by the Labor Department’s consumer price index (CPI) report, which showed a 0.2% month-over-month rise and a 3.1% year-over-year increase in core CPI—the lowest since April 2021—both slightly below expectations. This inflation deceleration eased some concerns about stagflation, but investors remained focused on the potential impact of recent tariff actions. Similarly, the producer price index (PPI) revealed flat headline prices and a decline in core prices for the first time since July, though components tied to the Fed’s preferred inflation measure, the PCE index, remained elevated. With the Fed expected to hold interest rates steady after its March 18–19 meeting, consumer sentiment continued to deteriorate, as the University of Michigan’s Index of Consumer Sentiment fell 11% in March, marking a third consecutive monthly decline. The report cited broad economic uncertainty, with year-ahead inflation expectations jumping to 4.9%, the highest since November 2022, fueling further concerns about the economic outlook.
Over the past 20 years, the S&P 500 has averaged 10.4% in annualized returns, navigating two major market crashes with double-digit declines. For some stocks, these crises have had enduring impacts. In fact, some of the companies most exposed to the subprime mortgage meltdown have yet to see their share price fully recover from pre-2008 levels. This graphic shows the worst performing stocks in the S&P 500 over the past two decades, based on data from Morgan Stanley Counterpoint Global Insights.
Like AIG, Citigroup was highly exposed to the credit squeeze in 2008-2009, and has seen its share price fall from around $490 in January 2005 to $70 at the end of 2024.
Despite severe losses for Citigroup, it ranks among the top banks in America by total assets. However, when it comes to share price performance, it has significantly underperformed rivals, including JPMorgan Chase & Co, which navigated the crisis successfully thanks to its diversified business model.
Also ranking on this list is legacy automaker, Ford Motor Company, with 1.4% average annualized returns over the period. While the stock has a healthy dividend, its share price appreciation has been minimal due to sluggish growth and high warranty costs. While Ford shares sank 19% in 2024, its main competitor, GM, saw its stock rise 48%.
Overall, six of the worst performing stocks are in the financial sector, including Bank of America and Huntington Bancshares. Meanwhile, three are in health care, and just one, Intel, is in the tech sector.