The COVID-19 market crash followed global shutdowns and produced the fastest bear-market decline in U.S. history.
The crash began in February 2020 as investors reacted to the spread of COVID-19, travel restrictions, business closures, and the prospect of a worldwide recession. The S&P 500 entered a bear market on March 12, 2020, and reached its low on March 23, only 22 trading days after its February record.
The decline was intensified by an oil-price dispute between Saudi Arabia and Russia, which sent crude prices lower in March. Central banks and governments then introduced extraordinary support, including interest-rate cuts, asset purchases, lending programs, and large fiscal measures.
The market recovery was unusually rapid compared with many earlier crashes, although the economy suffered a severe contraction and unemployment spike. The crash is sometimes called the coronavirus crash or the pandemic crash; all refer to the same 2020 episode.