Wall Street is in a bear market. Here's what that means for your money.

The stock market's tumble this year has put the S&P 500 into a bear market — the term for when stocks decline at least 20% from their most recent high. Wall Street is grappling with the impact of rising interest rates, high inflation and energy costs, theand a slowdown in China's economy, prompting investors to reconsider the prices they're willing to pay for stocks.

During the past two years, stocks often seemed to go in only one direction: up. Now, the familiar rallying cry to"buy the dip" after every market wobble is giving way to fear that the dip is turning into a crater. For many investors, the bear market will become official if the S&P 500, Wall Street's main barometer of health, finishes the day at least 20% down from its peak.

But even if a recession is avoided, the Fed's interest rate hikes will still put downward pressure on stocks. "Going back more than 50 years shows that only once was there a bear market without a recession that lost more than 20% and that was during the Crash of 1987," Detrick said in a research note.

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