A bear market may be on the horizon. Here’s what that means

Stock market futures tumble as stimulus bill hits roadblock in Congress
Posted at 4:23 PM, May 19, 2022
and last updated 2022-05-19 16:23:35-04

NEW YORK (AP) — Investors on Wall Street need a place to hide.

The stock market’s skid this year has pulled the S&P 500 close to what’s known as a bear market.

Rising interest rates, high inflation, the war in Ukraine and a slowdown in China’s economy have caused investors to reconsider the prices they’re willing to pay for a wide range of stocks, from high-flying tech companies to traditional automakers.

A bear market is a term used by Wall Street when a market index has fallen 20% or more from a recent high.

The S&P 500 is now down 18.7% from the record high set on Jan. 3.