Sources: IRS, SEC, Federal Reserve, U.S. Bureau of Labor Statistics & U.S. Census Bureau. See our editorial standards.
A period when stock prices fall 20% or more from recent highs, usually amid pessimism and economic weakness.
Definition: A period when stock prices fall 20% or more from recent highs, usually amid pessimism and economic weakness.
A bear market is the opposite of a bull market: prices decline broadly, often accompanied by recession fears. While unsettling, bear markets are a normal part of investing and historically have been followed by recoveries. Investors who keep contributing during bear markets buy shares at lower prices, which can boost long-run returns.
In 2022, the S&P 500 fell more than 20% from its January peak, officially entering a bear market driven by rising interest rates and inflation.
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