The Dow is in a bear market. What does that mean?

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While the Dow is a much narrower index than the S&P 500 and Nasdaq, it is historically the one Main Street watches most closely.

With the S&P 500 and Nasdaq already down some 23% and 32%, respectively, from their record highs, confirmation the Dow is also in aWhile the Dow, with only 30 large-cap companies, is a much narrower index than the other two, it is historically the one Main Street watches most closely.

Indeed, for professionals these are just labels that are less important than fundamentals like company earnings and valuations, interest rates, and economic conditions. Similarly, some define a bull market as a 20% rise from a previous low. However, S&P Dow Jones Indices, which administers the S&P 500 and Dow Jones Industrial Average, has an even more nuanced definition.

 

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