What was the fastest U.S. bear market to reach a 20 percent decline, beginning during the COVID-19 crash?

The 2020 bear market was the fastest U.S. bear market to reach a 20 percent decline during the COVID-19 crash.

The S&P 500 entered bear-market territory on March 12, 2020, after falling at least 20 percent from its February 19 record close. The index reached that threshold in only 16 trading days, making the move the fastest bear-market descent from a record high in widely cited U.S. market history.

The crash reflected rapidly changing expectations about the COVID-19 pandemic, economic shutdowns, travel restrictions, supply disruptions, and corporate earnings. A price war in the oil market added pressure in early March.

The decline was unusually abrupt, but the recovery was also rapid compared with many historical crashes. Extraordinary monetary and fiscal support, along with expectations of vaccine development and economic reopening, helped markets rebound. The event is sometimes called the COVID-19 crash, although the pandemic’s economic effects extended well beyond the market’s initial plunge.