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A rare 'death cross' appeared on the US stock market this week, sparking fears that further downturn is on the horizon. A death cross is when the 50-day moving average of an stock index drops below the 200-day average — indicating momentum is weakening. A moving average is the average range of prices of an asset over a given period of time.
The pattern effectively tells investors that prices have deteriorated in a short period of time. The sign has appeared before several major crashes including in 2008 and 1929. Since the lows of the financial crisis in March 2009, the S&P 500 has endured seven notable death cross events - and this week marked the eighth.
On Monday, the S&P 500 saw a death cross, spooking investors after weeks of market volatility as a result of Donald Trump's sweeping tariff proposals. A similar crossover then occurred several days later on the tech-heavy Nasdaq Composite Index. On Thursday, the Dow Jones Industrial Average was set to become the latest major index to experience a death cross, marking the first time the ominous signal has appeared on the index since 2023.
On Monday, the S&P 500 saw a death cross, spooking investors after weeks of market volatility as a result of Donald Trump's sweeping tariff proposals 'As the name implies, a death cross is viewed as a bearish technical development and is often used as an...
Tilly Armstrong.
