The S&P 500 lost 33.9% from its February 2020 peak to its March 2020 trough during the COVID-19 crash.
The index closed at a record high on February 19, 2020, as investors had not yet fully priced the global economic consequences of COVID-19. As outbreaks spread, governments imposed restrictions, businesses closed, and expectations for corporate earnings deteriorated.
The S&P 500 reached its bear-market low on March 23, 2020, after an exceptionally rapid decline. The Federal Reserve’s emergency measures, large fiscal programs, and progress toward economic reopening helped support a powerful rebound later in the year.
This crash is distinct from the 2008 financial crisis because its initial cause was a public-health emergency rather than a banking-system collapse. Market falls also reflected an oil-price dispute between Saudi Arabia and Russia in March 2020.