The S&P 500 entered a bear market in March 2020 during the COVID-19 crash.
On March 12, 2020, the index closed more than 20% below its February 19 record close, meeting the commonly used definition of a bear market. The decline followed mounting concern about the coronavirus, travel restrictions, business shutdowns, and an abrupt economic shock.
Markets experienced several violent sessions, including circuit-breaker halts and the largest one-day percentage declines since 1987. On March 23, the Federal Reserve announced expansive measures to support financial markets.
The downturn was unusually fast. After reaching its bear-market low on March 23, the S&P 500 began a powerful rebound as governments and central banks provided support and investors anticipated economic reopening. The health crisis and financial crisis were closely connected but not identical.