U.S. Stock Market Faces Bear Market Concerns Amid Economic Worries

According to PANews, futures linked to the S&P 500 index fell further on Monday, dropping more than 20% from their historical highs, signaling an impending bear market for this key U.S. stock index. The Dow Jones Industrial Average futures also declined by 20% from their peak, while the Nasdaq index confirmed its bear market status last week. This downturn is attributed to global market concerns following U.S. President Donald Trump's comprehensive tariff imposition, which has heightened fears of an economic recession. A widely accepted definition states that an index is confirmed to be in a bear market if it closes more than 20% below its historical peak. The S&P 500 last confirmed its bear market status in June 2022, amid investor concerns over whether the Federal Reserve could curb post-pandemic inflation without triggering a recession. Bear markets often lead to economic recessions and persist until investors believe the worst phase of the downturn has passed. Data from investment research firm CFRA indicates that out of 12 bear markets since 1948, nine have coincided with economic recessions.