Editing Market trend (section)

===Bear market===
[[File:Bear Sculpture IFSC House.jpg|thumb|right|Sculpture of stock market bear outside [[International Financial Services Centre, Dublin|International Financial Services Centre]], Dublin]]
A bear market is a general decline in the stock market over a period of time.<ref>{{cite book | url=https://books.google.com/books?id=vfxAHAAACAAJ | first1=Arthur | last1=O'Sullivan | first2=Steven M. | last2=Sheffrin | title=Economics: Principles in Action | publisher=[[Prentice Hall]] | year=2003 | page=290 | isbn=0-13-063085-3}}</ref> It involves a transition from high investor [[optimism]] to widespread investor fear and pessimism. One generally accepted measure of a bear market is a price decline of 20% or more over at least a two-month period.<ref>{{Cite web | url=https://www.investopedia.com/terms/b/bearmarket.asp | title=Bear Market | publisher=[[Investopedia]]}}</ref>

A decline of 10% to 20% is classified as a [[Market correction|correction]].

Bear territory always precedes a bear market. Typically, as a market enters bear territory, there are indicators other than a correction. The Cboe Volatility Index ([[VIX]]), a key measure of market volatility, increases, indicating heightened investor anxiety. Additionally, [[Consumer confidence|consumer sentiment]] drops, with expectations for [[unemployment]] rising and [[Economic forecasting|economic outlooks]] declining.<ref>{{Cite web | url=https://www.reuters.com/markets/us/investors-grapple-with-tariff-driven-economic-threat-market-swings-persist-2025-04-11/ | title=Economic Threat| publisher=[[Reuters]]}}</ref> Most recently (as of April 12, 2025), in April 2025, the United States stock market entered bear territory.<ref>{{Cite web | url=https://apnews.com/article/bear-market-stocks-market-tariffs-trump-sp-500-c5d106a80666c0ff4f0e71624d525158 | title=Bear Market | publisher=[[AP News]]}}</ref> The [[S&P 500 Index]] declined over 20% from its recent peak, meeting the technical definition of entering bear territory. This downturn is primarily attributed to escalating trade tensions and [[Tariffs in the second Trump administration|tariff policies under the Trump administration]], which have led to significant market [[Volatility (finance)|volatility]] and investor uncertainty.<ref>{{Cite web | url=https://www.businessinsider.com/stock-market-crash-long-way-to-go-tariffs-consumer-sentiment-2025-4 | title=Market Crash| publisher=[[Business Insider]]}}</ref> Ultimately, when a market enters bear territory, it almost always leads that stock market into a bear market.

Bear markets conclude when stocks recover, reaching new highs.<ref>{{cite news|last=DeCambre|first=Mark|url=https://www.marketwatch.com/story/stop-saying-the-dow-is-moving-in-and-out-of-correction-that-is-not-how-stock-market-moves-work-2018-03-23|title=Stop saying the Dow is moving in and out of correction! That is not how stock-market moves work|date=April 6, 2018|work=[[MarketWatch]]}}</ref> The bear market is then assessed retrospectively from the recent highs to the lowest closing price,<ref>{{Cite web|url=https://www.businessinsider.com/illustration-of-bull-and-bear-markets-2014-12|title=This Is The Best Illustration Of History's Bull And Bear Markets We've Seen Yet|last=Ro|first=Sam|website=Business Insider|access-date=2020-03-18}}</ref> and its recovery period spans from the lowest closing price to the attainment of new highs. Another commonly accepted indicator of the end of a bear market is indices gaining 20% or more from their low.<ref>{{Cite news|last=Driebusch|first=Georgi Kantchev and Corrie|url=https://www.wsj.com/articles/global-stocks-waver-after-weak-economic-data-11550220104|title=Nasdaq Exits Bear Market as Stocks Rally|date=2019-02-15|work=Wall Street Journal|access-date=2020-03-18|language=en-US|issn=0099-9660}}</ref><ref>{{Cite web|url=https://www.marketwatch.com/story/the-nasdaq-is-on-pace-to-end-its-longest-bear-market-in-nearly-30-years-2019-02-13|title=The Nasdaq escapes longest bear market — by one measure — in 28 years|last=DeCambre|first=Mark|website=MarketWatch|language=en-US|access-date=2020-03-18}}</ref>

From 1926 to 2014, the average duration of a bear market was 13 months, accompanied by an average cumulative loss of 30%. Annualized declines for bear markets ranged from −19.7% to −47%.<ref>{{cite news | url=https://www.cnbc.com/2018/10/26/the-stock-market-loses-13percent-in-a-correction-on-average.html | title=The stock market loses 13% in a correction on average, if it doesn't turn into a bear market | first1=Thomas | last1=Franck | first2=Kate | last2=Rooney | work=[[CNBC]] | date=October 26, 2018}}</ref>

====Examples====
Some examples of a bear market include:
* The [[Wall Street Crash of 1929]], which erased 89% (from 386 to 40) of the [[Dow Jones Industrial Average]]'s [[market capitalization]] by July 1932, marking the start of the [[Great Depression]]. After regaining nearly 50% of its losses, a longer bear market from 1937 to 1942 occurred in which the market was again cut in half. 
* A long-term bear market occurred from about 1973 to 1982, encompassing the [[1970s energy crisis]] and the high unemployment of the early 1980s. 
* A bear market occurred in India following the [[1992 Indian stock market scam]] committed by [[Harshad Mehta]].
* The [[Stock market downturn of 2002]].
* Due to the [[2008 financial crisis]], a bear market occurred between October 2007 and March 2009. 
* The [[2015 Chinese stock market crash]]. 
* In early 2020, the [[COVID-19 pandemic]] caused multiple [[2020 stock market crash|stock market crashes]], leading to bear markets across the world.
* In 2022, concerns over an [[2021–2022 inflation surge|inflation surge]] and potential rises of the [[federal funds rate]] caused a bear market.<ref>{{cite news |title=The S&P 500 is in a Bear Market; Here's What That Means |url=https://www.voanews.com/a/the-s-p-500-is-in-a-bear-market-here-s-what-that-means/6616498.html |access-date=14 June 2022 |work=VOA |date=13 June 2022 |language=en}}</ref>