The shortest bear market in history lasted just 33 days, occurring in early 2020 during the COVID-19 crash.
From February 19 to March 23, 2020, the S&P 500 plunged by around 34% as pandemic fears gripped global markets. This rapid decline was followed by an equally swift recovery, driven by unprecedented government stimulus.
This event demonstrated how quickly market sentiment can shift and highlighted the impact of fiscal and monetary intervention in stabilizing financial markets.
Market Wrap
U.S. stock markets experienced mixed performance on Wednesday, March 12, 2025, as investors navigated a landscape shaped by cooling inflation data and escalating trade tensions.
Cooling Inflation Data:
The Consumer Price Index (CPI) for February rose by 0.2%, aligning with expectations and marking a slowdown from January's 0.5% increase. On an annual basis, the CPI advanced 2.8%, suggesting that inflationary pressures may be easing. This data provided some relief to investors concerned about aggressive monetary tightening.
Trade Tensions and Tariffs:
President Donald Trump's implementation of a 25% tariff on steel and aluminum imports has heightened fears of a global trade war. In response, Canada announced reciprocal tariffs on $30 billion of U.S. imports, and the European Union plans countermeasures on $26 billion worth of U.S. goods starting in April. These developments have introduced uncertainties that could impact global supply chains and corporate earnings.
Treasury Yields:
U.S. Treasury yields edged higher following the inflation data, as investors recalibrated expectations for future Federal Reserve policy actions. Despite the moderation in inflation, the potential economic slowdown from trade conflicts remains a concern.
Commodity Prices:
The newly imposed tariffs are expected to increase costs for industries reliant on steel and aluminum, potentially leading to higher consumer prices and impacting sectors such as automotive and manufacturing.
Netflix Inc. shares rose 2.7%, following reports of increased subscriber growth and successful original content releases, reinforcing the company's position as a leader in the streaming industry.
Boeing Co. shares gained 3.1%, as the company received positive news regarding aircraft orders and progress in resolving production issues, boosting investor confidence.
Intel Corporation shares rose following the appointment of Lip-Bu Tan as the new CEO. Tan's extensive experience in the technology sector and previous leadership roles have bolstered investor confidence in Intel's strategic direction.
iRobot Corporation shares plummeted after the company issued a 'going concern' warning, raising doubts about its financial stability and future operations.
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