In stock-market terminology, what does a bear market generally describe?

A bear market generally describes a prolonged market decline in prices or investor confidence.

Financial commentators commonly use the term for a fall of at least 20% from a recent high, although definitions can vary by market and source. The decline may affect a broad index, an asset class, or individual securities. A bear market can be driven by recession fears, high interest rates, financial stress, geopolitical events, or weakening corporate profits.

A bear market is different from a correction, which usually means a smaller decline of about 10% from a recent peak. It is also different from a bear-market rally, a temporary rise that occurs during a broader downtrend. These labels describe market behavior, not a guaranteed forecast.

The term bear is commonly paired with bull, which describes generally rising prices. Investors may respond to bear markets with diversification, rebalancing, or long-term holding, but no single strategy eliminates investment risk.