During the 2020 COVID-19 market crash, a decline of at least 20% from a recent market high was called a bear market.
The term applied when major indexes fell at least 20% from their prior peaks. The S&P 500 entered bear-market territory on March 12, 2020, as investors reacted to the spreading pandemic and its expected economic disruption.
The crash was exceptionally rapid. Travel restrictions, business closures, supply-chain interruptions, and uncertainty about public health drove selling across global markets.
Central banks and governments responded with emergency interest-rate cuts, asset purchases, fiscal support, and lending programs. Markets subsequently rebounded sharply, although the economic effects of the pandemic continued well beyond the initial crash.