HSBC Fell 5.5% In A Day. What To Do Now?.

HSBC (HSBC) stock is down 5.5% in a day. While history suggests price dips recover, there is risk – specific to balance sheet and downturn resilience. Consider the following data:

• A $218 Bil company with $68 Bil in revenue currently trading at $61.48.
• Last 12 month revenue growth of 0.3% and operating margin of 0.0%.
• Has Debt to Equity ratio of 0.5 and Cash to Assets ratio of 0.1
• Currently trading at P/E multiple of 10.5 and P/EBIT multiple of 0.0
• Has one instance since 2010 where it dipped >30% in < 30 days and subsequently returned 23.1% within a year. See HSBC Dip Buy Analysis.

While we like to buy dips if the fundamentals check out – for HSBC, see Buy or Sell HSBC Stock – we are wary of falling knives. Specifically, it is worth trying to answer if things get really bad, and HSBC drops another 20-30% to $43.04 levels, will we be able to hold on to the stock? What is the worst case scenario? We call it downturn resilience.

Below is a deep dive into HSBC (HSBC) downturn resilience – specifically, its performance vs the market during past crises? Turns out, the stock has fared worse than the S&P 500 index during various economic downturns.

HSBC provides global banking and financial services across wealth, personal, commercial, and global banking segments; founded in 1865 and headquartered in London.

2022 Inflation Shock

• HSBC stock fell 34.6% from a high of $38.25 on 8 February 2022 to $25.01 on 12 October 2022 vs. a peak-to-trough decline of 25.4% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 21 February 2023
• Since then, the stock increased to a high of $65.13 on 23 July 2025 , and currently trades at $61.48

• HSBC stock fell 54.0% from a high of $39.37 on 2 January 2020 to $18.11 on 25 September 2020 vs. a peak-to-trough decline of 33.9% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 20 June 2023

• HSBC stock fell 35.3% from a high of $55.62 on 17 January 2018 to $36.00 on 14 August 2019 vs. a peak-to-trough decline of 19.8% for the S&P 500.
• However, the stock fully recovered to its pre-Crisis peak by 18 February 2025

• HSBC stock fell 76.3% from a high of $99.52 on 31 October 2007 to $23.59 on 11 March 2009 vs. a peak-to-trough decline of 56.8% for the S&P 500.
• The stock is yet to recover to its pre-Crisis high