A period when stock prices are generally falling and investors are pessimistic about the economy. In a bear market, people worry about losses and may sell stocks to reduce risk. A bear market is typically defined as a decline of 20 percent or more from recent highs.
In 2022, the S&P 500 fell about 18 percent as interest rates rose and inflation stayed high. Investors became worried and sold stocks, causing prices to keep dropping throughout the year.
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