Analysis: S&P 500 Index Reaches Bear Market Territory, Signaling Possible Economic Recession

BlockBeats News, April 7th, futures linked to the S&P 500 Index fell further on Monday, down more than 20% from its all-time high, as the most watched benchmark stock index in the U.S. is set to confirm a bear market. Dow Jones Industrial Average futures also fell 20% from their peak, while the Nasdaq Index confirmed last week that it was in a bear market, as concerns about an economic downturn after Trump's comprehensive tariff imposition hit global stock markets. According to a widely used definition, an index is confirmed to be in a bear market if it closes more than 20% below its historical high.

The last time the S&P 500 Index confirmed it was in a bear market was in June 2022, when investors were worried about whether the Fed could curb post-pandemic inflation without causing an economic recession. A bear market typically leads to an economic recession and lasts until investors believe the worst phase of the recession is over. Data from investment research firm CFRA shows that of the 12 bear markets since 1948, 9 have been accompanied by an economic recession. (Jin10)