Current:Home > ScamsThe bear market is finally over. Here's why investors see better days ahead. -Excel Wealth Summit
The bear market is finally over. Here's why investors see better days ahead.
View
Date:2025-04-13 00:49:16
Americans' investments are out of the grip of one of the longest bear markets in recent history.
The S&P 500 gained 0.6% on Thursday, pushing the market 20% higher than the trough stocks hit in October, closing at 4,294. That means Wall Street was finally released from the claws of a bear market — when stocks falls 20% or more from a recent high for a sustained period of time — that began in June 2022.
While bear markets are common, the most recent slump marked one of the first major downturns for younger investors, as well as proving especially painful for older workers who saw their retirement investments slide. Last year, Wall Street soured on stocks as the Federal Reserve began a regime of interest rate hikes to battle record-high inflation.
But the S&P 500 has bucked the bear market by gaining more than 12% this year, as what once seemed like a certain recession never materialized and the job market remained strong. The gains have helped buoy the investment holdings of millions of Americans, who suffered a $3 trillion hit to their retirement accounts last year.
Better days ahead?
"Bottom line, the economy has been very resilient," said Anthony Saglimbene, chief markets strategist at Ameriprise Financial.
"So much negativity was built into the market," he said. "While it's too early to know this for sure, stocks look like they're doing what they normally do when all the negativity has been discounted into the stock market: They start moving higher in anticipation of better days ahead."
The most recent bear market lasted 248 trading days, according to the Wall Street Journal, citing Dow Jones Market Data. By comparison, the average bear market has lasted 142 trading days.
Prior to the most recent downturn, investors suffered a short-lived bear market at the start of the pandemic, when stocks plunged more than 20% from February 19, 2020, through March 23, 2020, then regained their footing and hit new highs.
With reporting by the Associated Press.
- In:
- Wall Street
- Stock Market
veryGood! (313)
Related
- Why Sean "Diddy" Combs Is Being Given a Laptop in Jail Amid Witness Intimidation Fears
- Veterans fear the VA's new foreclosure rescue plan won't help them
- Top general launches investigation into allegations of alcohol consumption at key commands
- Peruvian rainforest defender from embattled Kichwa tribe shot dead in river attack
- Trump suggestion that Egypt, Jordan absorb Palestinians from Gaza draws rejections, confusion
- Coup leader Guy Philippe repatriated to Haiti as many question his next role in country in upheaval
- The 'Hannibal Lecter facial' has people sending electricity into their faces. Is it safe?
- For a male sexual assault survivor, justice won in court does not equal healing
- Juan Soto to be introduced by Mets at Citi Field after striking record $765 million, 15
- Rep. George Santos remains defiant as House to vote on expulsion this week
Ranking
- What to watch: O Jolie night
- Sebastian the husky reunited with owner after getting stuck in Kentucky sewer drain
- See Blue Ivy and Beyoncé's Buzzing Moment at Renaissance Film London Premiere
- After a 2-year delay, deliveries of Tesla's Cybertruck are scheduled to start Thursday
- How to watch the 'Blue Bloods' Season 14 finale: Final episode premiere date, cast
- Applications for jobless benefits up modestly, but continuing claims reach highest level in 2 years
- Still alive! Golden mole not seen for 80 years and presumed extinct is found again in South Africa
- Elton John honored by Parliament for 'exceptional' contributions through AIDS Foundation
Recommendation
New Zealand official reverses visa refusal for US conservative influencer Candace Owens
Blinken urges Israel to comply with international law in war against Hamas as truce is extended
Phish is the next band to perform at the futuristic Sphere Las Vegas: How to get tickets
DeSantis and Newsom will face off in a Fox News event featuring two governors with White House hopes
Sam Taylor
Live updates | More Israeli hostages and Palestinian prisoners are released under truce
Ex-health secretary Matt Hancock defends his record at UK’s COVID inquiry
Google this week will begin deleting inactive accounts. Here's how to save yours.