The Standard and Poor’s 500 (S&P 500) confirmed Monday it had entered a bear market, landing at a 21.8 percent index from its January 3 record high.
S&P 500’s index benchmark has fallen for four straight days, its longest streak in the past three months.
S&P 500’s losses had heightened fear of the Federal Reserve raising interest rates that could lead the economy to recession.
Price hikes this year have led the Federal Reserve to tighten its monetary policy, including the increase in interest rates. High-growth market heavyweights such as Apple Inc., Microsoft Corp, and Amazon.com Inc have also impacted S&P 500’s performance, dragging it to enter the bear market.
In May, S&P 500 also traded below the bear market but did not close below it.
MarketWatch noted that S&P 500’s bear market started on January 3 and may last for a year on average.
S&P 500’s longest bear market started on March 6, 1937, and ended on April 29, 1942, lasting for five years. Its shortest, however, lasted just over a month, starting on February 19, 2020, and ending on March 23, 2020.
The Dow Jones Industrial Average also recorded 876.05 points or a 2.8 percent loss. Nasdaq Composite also dropped 4.7 percent on Monday after entering the bear market earlier this year.
© Fourth Estate® — All Rights Reserved.
This material may not be published, broadcast, rewritten or redistributed.