What happens when stocks cross into a bear market?

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Wall Street's staggering skid that began less than three weeks ago has pulled the Dow Jones Industrial Average into what's known as a bear market.

The S&P 500, the index most investors pay attention to, moved within striking distance of its own bear market Wednesday, as did the Nasdaq. Both indexes are in a correction, down at least 10% from their most recent all-time highs.

The major U.S. stock indexes entered a correction this month amid mounting fears about the impact that the coronavirus outbreak could have on the global economy and company earnings growth. A oil market price war this week that led analysts to lower their profit forecasts for energy companies fueled more selling on Wall Street.

Investors remain uncertain over whether action taken by the Federal Reserve and the Trump administration to shield the economy will be effective or arrive quickly enough to prevent widespread economic pain.

 

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They cross into crash market soon.

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