Nasdaq Bear Market: What It Really Means for Investors
The stock market's downturn hit a new milestone on Monday, when the Nasdaq Composite (NASDAQINDEX: ^IXIC) closed down more than 3.6%. The daily drop completed a decline of more than 20% from the tech-heavy index's all-time highs in November, and while Wall Street seemed somewhat calmer Tuesday morning about everything going on in the world right now, a roughly 0.5% rise in Nasdaq futures as of 7:30 a.m. ET wasn't exactly the biggest sign of long-term confidence in the stock market.
Ordinarily, investors might expect that the emergence of an official bear market would be noteworthy. Moves of 20% or more for major indexes have been few and far between during the 21st century, with the plunge at the beginning of the COVID-19 pandemic, the financial crisis of 2008 and 2009, and the tech bust from 2000 to 2002 standing out as the major downward moves for the most followed stock market benchmarks. But this time seems different, and a lot of the reason has to do with the truly punishing downward moves we've seen in individual stocks.
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Source Fool.com