Thu, March 28, 2024

How Long It Takes to end Bear Market

Wall Street could Rebound amid Stop-Gap Funding Approval

The coronavirus pandemic is a serious challenge to the stock markets around the globe and the U.S. stock market is not an exception. People should take into consideration that usually it takes a lot of time for stocks to recover from severe losses. Furthermore, bear markets are measured in months, not days. Based on the information provided by Goldman Sachs, the median bear market lasted for 17 months.

Moreover, even the shortest bear market lasted for more than three months.

Nevertheless, there were 23 trading days between the S&P 500 record high in February and the recent low.

Thus, it is too early to say that the bear market is over. However, the Dow Jones Industrial Average staged an impressive comeback and this is great news after so many turbulent days.

Bear market and U.S. economyStock market and risk factors

As stated above, the bear market is not over, but the U.S. stock market is racing back to life. For example, last week, the Dow Jones Industrial Average gained 12.8%. Interestingly, it was the biggest weekly percentage gain since 1938. Furthermore, the S&P 500 reached its best three-day return since 1933.

However, people should not forget that the bottom of this cycle won’t truly come until there is enough evidence to say that the pandemic is under control. Another important indicator is the state of the U.S. economy.

Two days ago, the S&P 500 index gained 3.4%. It was less than 3% away from the 20% threshold needed to declare bear market over.

The White House and lawmakers reached an agreement regarding the $2 trillion stimulus package. It is the biggest stimulus package in U.S. history. The Senate, as well as Congress, approved the stimulus bill.

As can be seen from the examples mentioned-above it will take time to solve all the problems. Moreover, governments around the world, are trying to support their economies.

YOU MAY ALSO LIKE

Ford

Quick Look: CVA Family Office LLC snaps up 4,559 shares of Ford

The government aspires to make Portugal Europe's top producer of prime lithium for electric car batteries.

Quick Look: Atlas Lithium signs investment and offtake agreements with Mitsui. Mitsui

Stocks and various factors, Baltimore

Quick Look: The Francis Scott Key Bridge in Baltimore collapsed after a

COMMENTS

Leave a Comment

Your email address will not be published. Required fields are marked *

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex

BROKER NEWS

Stock Report – stock exchange background – WibestBroker

Plus500 Expands Office Space in Haifa and Boosts Hiring

Plus500 has significantly expanded its Haifa office space and increased recruitment efforts across various departments. Local news source Walla reports the brokerage has leased an additional 5,800 square meters in the Gev-Yam complex in