The S&P 500 entered a bear market in 16 trading days during the 2020 COVID-19 crash.
A bear market is commonly defined as a decline of at least 20% from a recent closing high. The S&P 500 reached a record close on February 19, 2020, then fell below the 20% threshold on March 12, making the episode the fastest bear-market entry in the index’s history at that time.
The sell-off reflected fears that the rapidly spreading coronavirus would disrupt travel, supply chains, employment, and corporate earnings. An oil-price dispute between Saudi Arabia and Russia added further pressure in March.
The 2020 crash is distinct from the 2008 financial crisis because its initial shock came from a global public-health emergency rather than a banking and housing collapse. Extraordinary monetary and fiscal support helped markets rebound sharply after the March low.