What was the fastest bear market in U.S. stock-market history, beginning in March 2020?

The COVID-19 crash was the fastest bear market in U.S. stock-market history, beginning in March 2020.

The sell-off occurred as the COVID-19 pandemic spread internationally and governments introduced travel restrictions, business closures, and stay-at-home measures. Investors rapidly reassessed corporate earnings, employment, supply chains, and economic activity.

The S&P 500 entered a bear market on March 12, 2020, and reached a closing low on March 23. From its February 19 peak to that low, the index fell about 34%. The decline was unusually swift: the bear market arrived in roughly one month, far faster than most earlier U.S. market downturns.

Central banks and governments responded with emergency interest-rate cuts, asset purchases, fiscal support, and lending programs. Markets then rebounded sharply, although the economic effects of the pandemic continued. The event is sometimes called the coronavirus crash or pandemic crash, while “COVID-19 recession” refers to the broader economic contraction rather than only the stock-market decline.