The S&P 500 fell about 34% from its February peak to its March 2020 low during the COVID-19 market crash.
The rapid decline reflected fears about the coronavirus pandemic, business shutdowns, disrupted supply chains, unemployment, and a collapse in energy demand. The S&P 500 entered a bear market in March after falling more than 20% from its February 19 record close.
Trading was so volatile that U.S. exchanges triggered circuit breakers several times. On March 16, the index fell about 12%, one of its worst daily declines. Governments and central banks responded with emergency fiscal support, interest-rate cuts, lending programs, and asset purchases.
The crash was unusually brief compared with many historic bear markets. The S&P 500 reached a low on March 23, 2020, then recovered rapidly as policy support expanded and investors anticipated economic reopening. The pandemic’s economic effects, however, continued long after the market low.