Market liquidity: Stressed

How US sectors performed when liquidity was stressed

Since Jan 3, 1983, the record reads this regime on 11.4% of trading days, across 280 episodes with a typical run of 2 sessions. Across those sessions since Dec 22, 1998, Information Technology did best at +47.2% a year and Utilities did worst at +2.9%, against +33.3% for the S&P 500.

Figures as of Sep 23, 2026 · recomputed every trading day

The regime in the record

Share of trading days
11.4%
Separate episodes
280
Typical run
2 sessions
Longest run
207 sessions
Last seen
Sep 18, 2025
Today
Not in force

Sector by sector

Annualised mean return on the session after each regime day. Sorted by the regime figure.

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
Communication Services XLCsince 2018+64.8%+12.3%+24.1%58%29.4%400
Information Technology XLK+47.2%+12.4%+16%55%38.4%992
Consumer Discretionary XLY+39.8%+10.4%+8.6%54%35.6%992
Financials XLF+31.3%+7.8%+0.1%53%53.9%992
Health Care XLV+27%+8.5%-4.2%53%26.3%992
Materials XLB+23.4%+8.5%-7.8%54%37%992
Industrials XLI+23.3%+9.4%-8%55%33.9%992
Consumer Staples XLP+18.7%+5.3%-12.5%54%22.3%992
Energy XLE+14%+10.2%-17.2%55%46.8%992
Utilities XLU+2.9%+5.4%-28.4%52%30.3%992
Real Estate XLREsince 2015+1.7%+5%-35.9%51%30.9%450

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+33.3%+10.2%—54%32.2%1,068
Nasdaq 100 QQQsince 1999+52.4%+13.4%+21.2%56%37.4%992
Russell 2000 IWMsince 2000+24.3%+9.8%-5.4%53%38.2%980
Long Treasuries TLTsince 2002-6.7%+1%-29.5%48%18.9%939
Gold GLDsince 2004+6.7%+11.7%-16.6%50%23%921

How this regime is defined

Market liquidity reads Stressed in the daily regime record.

Method and limits

Descriptive statistics over the published regime record — not a backtest, a forecast or advice. Each regime day is credited with the NEXT session's return, so a regime never earns the move that revealed it. Returns are ETF price returns (dividends excluded), annualised as 252 × the mean session return; volatility likewise. Sector funds start in December 1998 (Real Estate in 2015, Communication Services in 2018); the regime record starts in 1980. Labels are the engine's as currently published and are recomputed when its method improves. A figure with fewer than 60 sessions is not shown.

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Questions

Which sectors did best when liquidity was stressed?
Information Technology +47.2%, Consumer Discretionary +39.8%, Financials +31.3%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +33.3%.
How common is this regime, and how long does it last?
It appears on 11.4% of trading days since 1983, in 280 separate episodes. The typical run is 2 sessions; the longest lasted 207 sessions.
Is this regime in force today?
No. It was last seen Aug 29, 2025 – Sep 18, 2025. The daily nine-axis reading is on the Regime Radar.
Is this a backtest?
No. It describes how assets behaved on the session after each day the regime was read, with no portfolio, costs or selection. A backtest would test a rule; this records a history.