TechFlow news, April 7 — According to Jinshi Data, futures linked to the S&P 500 index fell further on Monday, dropping more than 20% from their historical highs, putting the most-watched U.S. stock market benchmark on the verge of confirming a bear market. Dow Jones Industrial Average futures have also declined 20% from their all-time highs, while the Nasdaq index last week confirmed its entry into a bear market, as concerns over a potential recession following Trump's sweeping tariffs weighed heavily on global equities.
According to a widely accepted definition, a bear market is confirmed when an index closes 20% or more below its historical peak closing level. The S&P 500 last confirmed it had entered a bear market in June 2022, when investors were uncertain whether the Federal Reserve could tame post-pandemic inflation without triggering a recession. Bear markets often coincide with recessions and typically persist until investors believe the worst phase of economic downturn has passed. Data from investment research firm CFRA shows that nine out of the 12 bear markets since 1948 have been accompanied by recessions.
