The S&P 500 fell 33.9 percent from its February 2020 peak to its March 2020 low during the COVID-19 crash.
The index reached a record closing high on February 19, 2020, as investors initially underestimated the economic effects of the emerging coronavirus pandemic. As infections spread and governments introduced travel restrictions, shutdowns, and social-distancing measures, expectations for corporate earnings deteriorated rapidly.
The S&P 500 entered a bear market in March, and trading was halted several times by circuit breakers as prices dropped. The Federal Reserve cut interest rates, purchased assets, and introduced emergency lending programs, while governments passed large fiscal-support measures.
The decline was unusually fast, but the recovery was also rapid compared with many earlier crashes. The market’s rebound did not mean the pandemic’s economic damage was small: unemployment surged, businesses closed, and global output contracted in 2020.