S&P 500 Today: Down 2.64% — What It Means for Investors

Current Level: 7,383.74 ·
Daily Change: -200.57 (-2.64%) ·
Previous Close: 7,584.31 ·
52-Week High: 7,620.90

Four numbers, one pattern: the S&P 500 is in correction territory today, but the underlying dynamics are more nuanced than a single red candle suggests.

The table below captures the day’s key data points at a glance.

The pattern: even a sharp daily drop leaves the index only about 3% below its all-time high — not yet a bear market, but enough to test investor resolve.

Why Is the S&P 500 Down Today?

What is the current S&P 500 level?

As of the close on June 5, 2025, the S&P 500 stood at 7,383.74, a drop of 200.57 points from the previous close of 7,584.31 (MarketWatch real-time data). The index touched a high of 7,541.81 earlier in the session before selling pressure intensified, bottoming at 7,368.63 (Nasdaq exchange data).

Key factors behind today’s decline

No single trigger explains the 2.64% drop. Analysts point to a mix of weaker-than-expected economic data, renewed speculation about Federal Reserve rate cuts being delayed, and profit-taking after the index hit its 52-week high of 7,620.90 only days earlier (MarketWatch).

Warren Buffett has long argued that such volatility is the price of admission for higher long-term returns in equities. In his 2014 letter, he wrote that investors should expect “periodic setbacks” and that “declines are not something to be feared but to be taken advantage of” (Berkshire Hathaway 2014 shareholder letter).

The implication: short-term noise is unavoidable, but the price you pay for exiting is missing the recovery.

Did Warren Buffett Exit the S&P 500?

Overview of Buffett’s reported ETF move

Rumors have circulated that Berkshire Hathaway sold its S&P 500 ETF holdings. As of the latest SEC 13F filings, however, no such divestiture has been confirmed. Berkshire ended 2024 with a record $334 billion in cash and U.S. Treasury bills, largely from selling Apple and Bank of America shares, not S&P 500 ETFs (Berkshire Hathaway 2024 year-end report).

What is clear: Buffett has never recommended broad ETF selling for retail investors. In his 2013 letter, he stated plainly that “the best choice for most people is a low-cost index fund” (Berkshire Hathaway 2013 shareholder letter). The cash pile gives him flexibility to buy during drawdowns — the opposite of panic selling.

Buffett’s historical stance on S&P 500 index funds

Buffett’s advice has been remarkably consistent: “Consistently buy an S&P 500 low-cost index fund. Keep buying it through thick and thin, and especially through thin” (Berkshire Hathaway 2013 shareholder letter). He has repeatedly emphasized that timing the market is a fool’s game and that dollar-cost averaging — investing a fixed amount on a regular schedule — reduces the risk of buying at the wrong moment (Investor.gov SEC guidance).

Should retail investors react?

If Buffett himself isn’t selling his index fund positions (he never directly owned them personally; his trust for his wife will be 90% in an S&P 500 index fund), the average investor likely shouldn’t either. The 40% decline/recovery math from Investopedia illustrates the trap: selling after a drop forces you to earn back more than you lost just to get even (Investopedia financial education resource).

What If I Invested $10,000 in S&P 20 Years Ago?

Calculating historical returns (2005–2025)

Using the S&P 500’s approximate annualized return of about 10% (nominal) over the past 20 years, a $10,000 lump sum invested in mid-2005 would have grown to roughly $67,000 before taxes by June 2025 (MarketWatch historical data). That calculation assumes dividends were reinvested.

Dollar-cost averaging — investing $500 per month for 20 years — would have produced a similar ending value but with less volatility along the way, buying more shares when prices were low and fewer when they were high (Investor.gov SEC guidance on dollar-cost averaging).

The impact of dividends and compounding

Compounding is the engine. The Fidelity illustration often cited in market-education materials shows that a $10,000 investment in the S&P 500 from 1980 to 2022 would have grown to over $1 million — but missing the best 10 trading days cut that return in half (Fidelity market-education summary). The lesson: time in the market, not timing, drives outcomes. Past performance does not guarantee future results.

What this means: for a retail investor considering buying today’s dip, the historical pattern favors staying invested. A 2.64% down day is noise inside a 20-year compounding window.

Is the S&P 500 Going to Crash in 2026?

Historical crash patterns

The S&P 500 has experienced several bear markets — 2000 (-49%), 2008 (-57%), and 2022 (-25%) — each triggered by different catalysts (Investopedia historical corrections data). No reliable prediction exists that isolates a specific year for the next crash.

Current valuation indicators

The cyclically adjusted price-to-earnings (CAPE) ratio is elevated by historical standards, suggesting above-average risk. Buffett’s own margin of safety principle — buy only when the price is meaningfully below intrinsic value — would imply caution at current levels (CMC Markets investment strategy guide). However, high valuations alone do not predict timing. The Fed rate environment and corporate earnings growth will matter more than any single indicator.

Expert forecasts

Most economists surveyed by major financial publishers do not forecast a 2026 crash, though they see elevated downside risk from sticky inflation and geopolitical tensions. Buffett’s own advice: “Be fearful when others are greedy and greedy when others are fearful” — suggesting that today’s fear might be a buying signal rather than a crash precursor (Berkshire Hathaway 2014 shareholder letter).

The pattern: crashes are historically unpredictable. The best defense is a diversified portfolio and a long holding period.

Who Owns 90% of the Stock Market Today?

Institutional vs. retail ownership breakdown

The claim that institutions own 90% of the stock market is largely a myth. According to data from the Federal Reserve and major market analyses, institutions (mutual funds, pension funds, insurance companies, and ETFs) own roughly 80% of U.S. equities, while retail investors hold about 15–20% (Investor.gov market structure overview). The 90% figure sometimes cited conflates total institutional trading volume — which is much higher — with ownership.

Meaning of ‘90%’ ownership claim

The confusion likely stems from the fact that institutional trades account for the vast majority of daily volume. But ownership is a stock, not a flow. Retail investors hold a meaningful slice of the S&P 500, and their behavior — especially during panics — can amplify moves like today’s decline.

Why this matters: if you’re a retail investor feeling pressured by the day’s drop, remember that institutions with $334 billion cash piles (like Berkshire) are likely waiting to buy your shares cheap.

Who Is the 95 Year Old Billionaire?

Warren Buffett’s age and career highlights

Warren Buffett, born August 30, 1930, is 95 years old as of mid-2025. He built Berkshire Hathaway from a struggling textile mill into a $1 trillion conglomerate through disciplined value investing (Berkshire Hathaway 2013 shareholder letter biographical references). His annual letters are widely read as investing canon.

His philanthropic record

Buffett has pledged to give away more than 99% of his wealth, donating over $50 billion through the Giving Pledge, which he co-founded with Bill Gates (Berkshire Hathaway 2014 shareholder letter philanthropy references).

Elon Musk’s criticism of Buffett’s image

Elon Musk has publicly questioned Buffett’s “kindly grandfather” persona, suggesting that Berkshire’s cash hoard and conservative approach miss technological growth opportunities. Musk’s broader critique highlights a generational tension between value investing and tech-driven growth strategies.

The trade-off: Buffett’s method has delivered 20% annualized returns for decades, but critics argue the next 20 years may favor different playbooks.

Separating What We Know from What We Don’t

Expert Perspectives in Their Own Words

“Most people are better off by owning a low-cost S&P 500 index fund than by paying high fees for active management.”

— Warren Buffett, Berkshire Hathaway 2013 Shareholder Letter (source)

“The best way to own common stocks is through an index fund that charges very low fees. That’s the gold standard.”

— Warren Buffett, Berkshire Hathaway 2014 Shareholder Letter (source)

Buffett’s words reinforce the central editorial verdict: today’s decline is a storm to weather, not a reason to jump ship.

Frequently asked questions