What was the fastest bear market in S&P 500 history by the time it ended in March 2020?
Answer
The COVID-19 bear market
The COVID-19 bear market was the fastest bear market in S&P 500 history by the time it ended in March 2020.
The S&P 500 entered bear-market territory on March 12, 2020, after the spread of COVID-19 triggered travel restrictions, business closures, supply disruptions, and widespread uncertainty. The index reached its closing low on March 23, only 33 days after its February 19 record close. From peak to trough, it fell about 33.9%.
The speed of the decline reflected both the sudden economic shock and modern global financial connections. Extraordinary monetary and fiscal support, along with improving expectations about vaccines and reopening, helped markets recover rapidly. The episode is distinct from the longer 2008–09 bear market and the extended decline following the dot-com bubble. A bear market is commonly defined as a fall of at least 20% from a recent closing high.