How the S&P 500 Performs After Closing in a Bear Market
By Nate Rattner and Ming Li
The S&P 500 fell into a bear market on Monday, down more than 20% from its record high on Jan. 3. Many stocks that soared during the pandemic rally, such as those in the technology and consumer-discretionary sectors, have been hit hard in this year’s downturn.
How long will the market pain last?
Since 1950, the S&P 500’s median return one month after closing in a bear market was 2.9%, according to Dow Jones Market Data. Three months after crossing the threshold, the median return was 5.7%, and after a year, it was 23.9%.