The 2020 bear market was the fastest U.S. bear market in history, beginning during the COVID-19 stock-market crash.
The S&P 500 entered bear-market territory on March 12, 2020, after falling at least 20% from its February 19 record close. The decline took only 16 trading days, making it the quickest move from a record high to a bear market in the index’s history.
The crash reflected the rapid spread of COVID-19, business closures, travel restrictions, supply disruptions, and extraordinary uncertainty about economic activity. Energy-market tensions and forced selling added pressure. The Federal Reserve and governments then introduced large monetary and fiscal responses.
The market recovered unusually quickly compared with many earlier crashes. The S&P 500 reached a new record high in August 2020, although economic damage and uneven effects continued. A bear market is defined by a decline of at least 20% from a recent closing high, not by a particular calendar length.