What does the term 'bull market' describe?

A bull market describes a period of rising stock prices.

The phrase refers to a broad upward trend in a market, index, or asset. Investors typically associate a bull market with improving confidence, stronger demand for shares, rising company valuations, and expectations of continued economic or earnings growth. It does not mean that every stock rises every day.

In common financial usage, a market is often called bullish after prices have climbed about 20% from a recent low, although definitions vary by analyst and market. A bull market can last months or years and may include temporary declines, known as corrections.

The usual contrast is a bear market, generally associated with a decline of about 20% from a recent peak. The animal imagery is often explained by the way a bull attacks upward and a bear swipes downward, though the terminology’s exact origin is older and less certain than that memorable visual analogy.