What term describes a market decline of at least 20% from a recent high?

A bear market commonly describes a market decline of at least 20% from a recent high.

The 20% threshold is a widely used convention for major stock-market indexes, although definitions can vary by market and institution. The decline is measured from a prior peak to a later trough, so the label is generally applied after the market has fallen substantially rather than after a small daily drop.

A bull market is the contrasting term for a prolonged rise in prices. A market correction often refers to a decline of at least 10% but less than 20%, though usage is not perfectly standardized. Bear markets can be caused by recessions, financial crises, policy shocks, or weakening corporate expectations, and they do not necessarily mean every individual stock has fallen by 20%.