The COVID-19 outbreak triggered the fastest bear-market entry in U.S. stock-market history in 2020.
The 2020 stock-market crash began as investors reacted to the spread of COVID-19, restrictions on movement, business closures, and the prospect of a severe global recession. The S&P 500 entered a bear market on 12 March 2020, only 16 trading days after reaching its February record high.
The shock was amplified by an oil-price dispute between Saudi Arabia and Russia, which caused crude prices to fall sharply. Extraordinary uncertainty produced several trading sessions in which U.S. market circuit breakers were activated, temporarily halting trading.
The decline was followed by a historically rapid rebound after central banks cut rates, governments introduced fiscal support, and vaccines were developed. The episode is distinct from the 2008 crisis because its initial trigger was a public-health emergency rather than a banking-system collapse.