London 7/7 Bombings — July 7, 2005
Coordinated attacks on London transport; S&P 500 closed higher
Four coordinated suicide bombings struck London's transport system, killing 52 people. The FTSE 100 fell approximately 200 points intraday but closed down only 71.3 points (1.36%). The S&P 500 actually closed slightly higher on the day.
What history says
Editorial commentary written by ALAN analysts. Figures cited below are analyst-authored context — they are not derived from the chart above and may reflect different windows or sources.
The S&P 500 closed slightly positive on July 7, 2005. Markets had internalized terrorism risk as episodic rather than systemic.
Each successive attack — Bali (2002), Madrid (2004), London (2005) — produced a smaller market reaction.
The attacks did not disrupt supply chains, energy markets, or trade flows.
By 2005 markets had learned to price terror attacks as episodic rather than systemic — US equities finished that day slightly higher. The respectful takeaway for a portfolio is preparation over reaction: if a tragedy of this kind would tempt you to sell, the allocation was likely too aggressive before the news.