Frightful Flashbacks: Today’s Stock Market Compared to 2008 as Crash Fears Mount

Between escalating oil prices stemming from another war in the Middle East and signs of instability in the financial system, Americans’ concerns about another 2008-like crash are mounting almost two decades after the global financial crisis.

Stocks’ poor performances have compounded those worries this year, resulting in the Nasdaq slipping in and out of correction territory over the past week.

Stocks’ poor performances have compounded those worries this year, resulting in the Nasdaq slipping in and out of correction territory over the past week.

“Asset performance in 2026 is more ominously close to price action seen from mid ’07 to mid ’08,” according to a March 12 note to clients written by Michael Hartnett, chief investment strategist at Bank of America.

“Asset performance in 2026 is more ominously close to price action seen from mid ’07 to mid ’08,” according to a March 12 note to clients written by Michael Hartnett, chief investment strategist at Bank of America.

The recent surge in oil prices since the United States and Israel launched attacks on Iran on Feb. 28, as well as illiquidity issues in the private credit market, bring to mind a famous Mark Twain quote: “History doesn’t repeat itself, but it often rhymes.”

The recent surge in oil prices since the United States and Israel launched attacks on Iran on Feb. 28, as well as illiquidity issues in the private credit market, bring to mind a famous Mark Twain quote: “History doesn’t repeat itself, but it often rhymes.”

While the current states of the market and economy may not mirror 2008, there are parallels to that year, which saw the S&P 500 crash by 38%. Many Americans have unfond memories of the subprime mortgage crisis decimating the housing market and triggering the Great Recession.

While the current states of the market and economy may not mirror 2008, there are parallels to that year, which saw the S&P 500 crash by 38%. Many Americans have unfond memories of the subprime mortgage crisis decimating the housing market and triggering the Great Recession.

Oil market volatility today is very different than 2008

Hartnett’s assertion that market conditions today resemble those in the lead-up to the financial crisis centers on two principal factors: a rapid increase in oil prices and vulnerabilities in the financial system.

He noted that the price of oil doubled between July 2007 and August 2008. Today, Brent crude — the global oil benchmark — is trading about 60% higher than it was in early February, in large part because Iran has shuttered the Strait of Hormuz, a waterway that is vital to global supply chains.

He noted that the price of oil doubled between July 2007 and August 2008. Today, Brent crude — the global oil benchmark — is trading about 60% higher than it was in early February, in large part because Iran has shuttered the Strait of Hormuz, a waterway that is vital to global supply chains.

In 2007, there were some supply issues and massive demand. Today, there’s less of a supply issue — other than the Strait of Hormuz being closed — and we’re starting to see demand destruction in global oil

“⟩In 2007, there were some supply issues and massive demand,” Thackeray says. “Today, there’s less of a supply issue — other than the Strait of Hormuz being closed — and we’re starting to see demand destruction in global oil.”

Corrections are normal and healthy

In addition to energy prices and private credit risks, the economy is grappling with a soft labor market and plummeting consumer confidence. Still, gross domestic product is forecast to grow. The Federal Reserve Bank of Atlanta expects 2% GDP growth in the first quarter of the year.

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