Analysis: The S&P 500 index has also reached the edge of a bear market, which may imply an economic recession

PANews reported on April 7th, according to Jinshi News, futures linked to the S&P 500 index fell further on Monday, dropping more than 20% from their historical highs. This most closely watched benchmark stock index in the US is about to confirm a bear market. Futures of the Dow Jones Industrial Average also fell by 20% from their historical highs, while the Nasdaq index confirmed last week that it was in a bear market due to concerns about economic recession after Trump's comprehensive tariffs hit global stock markets.

According to a widely used definition, if an index closes more than 20% lower than its historical closing high point, then this confirms that it has entered into a bear market. The last time the S&P 500 Index confirmed its entry into a bearish zone was in June 2022 when investors were worried whether or not the Federal Reserve could curb post-pandemic inflation without triggering an economic recession. 

Bear markets usually lead to economic recessions and continue until investors believe that the worst stage of economic recession has passed. Data from investment research firm CFRA shows that out of twelve bear markets since 1948, nine have been accompanied by an economic recession.