What is a prolonged period of falling stock prices called?

A prolonged period of falling stock prices is called a bear market.

The term describes a broad decline accompanied by pessimistic investor sentiment. In common financial usage, a bear market is often identified when a major market index falls at least 20% from a recent peak, although definitions differ slightly by institution and market.

The word “bear” is linked to traders who expected prices to fall and therefore sold assets they hoped to repurchase more cheaply. The exact origin of the expression is debated, but the bear became the enduring symbol of declining markets. Its counterpart is the bull market, associated with rising prices and optimism.

A bear market is not the same as a correction. A correction usually refers to a smaller decline, while a bear market generally signals a deeper, sustained downturn. Famous examples include the 2007–09 financial-crisis bear market and the exceptionally rapid COVID-19 bear market of 2020.