Volatility shock

How US sectors performed during a volatility shock

Since Jan 3, 1983, the record reads this regime on 11% of trading days, across 301 episodes with a typical run of 2 sessions. Across those sessions since Dec 22, 1998, Information Technology did best at +45.3% a year and Energy did worst at +3.2%, against +30.9% 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%
Separate episodes
301
Typical run
2 sessions
Longest run
148 sessions
Last seen
Apr 8, 2026
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
Information Technology XLK+45.3%+12.4%+18.5%55%42%902
Communication Services XLCsince 2018+40.4%+12.3%+7.2%57%35.3%272
Financials XLF+29.9%+7.8%+3%53%56%902
Consumer Discretionary XLY+25.3%+10.4%-1.5%55%38.3%902
Industrials XLI+18.8%+9.4%-8.1%54%37.1%902
Materials XLB+18.4%+8.5%-8.5%54%40%902
Health Care XLV+16.9%+8.5%-9.9%54%30.2%902
Consumer Staples XLP+7.5%+5.3%-19.4%53%25.1%902
Real Estate XLREsince 2015+6.4%+5%-25.9%56%37.2%315
Utilities XLU+6%+5.4%-20.9%54%34.5%902
Energy XLE+3.2%+10.2%-23.7%52%49.6%902

Context

AssetIn this regimeAll daysvs S&P 500Up sessionsVolatilitySessions
S&P 500 SPY+30.9%+10.2%—56%34.2%1,050
Nasdaq 100 QQQsince 1999+47.1%+13.4%+20.4%54%41%901
Russell 2000 IWMsince 2000+25.3%+9.8%-1.3%55%40.5%882
Long Treasuries TLTsince 2002-12.6%+1%-43.1%47%19.7%790
Gold GLDsince 2004+5.7%+11.7%-20.3%52%25.9%732

How this regime is defined

Volatility reads high or extreme while market sentiment reads bearish or very bearish.

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 during a volatility shock?
Information Technology +45.3%, Financials +29.9%, Consumer Discretionary +25.3%. Annualised mean next-session returns since Dec 22, 1998; the S&P 500 returned +30.9%.
How common is this regime, and how long does it last?
It appears on 11% of trading days since 1983, in 301 separate episodes. The typical run is 2 sessions; the longest lasted 148 sessions.
Is this regime in force today?
No. It was last seen Mar 26, 2026 – Apr 8, 2026. 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.