UNITED STATES NEWS

The S&P 500 is in a bull market. Here’s what that means and how long the bull might run

Jun 8, 2023, 1:26 PM

The S&P 500 is now in what Wall Street refers to as a bull market, meaning the index has risen 20% or more from its most recent low.

Here are some answers to questions about bull and bear markets:

WHY IT IS CALLED A BULL MARKET?

Wall Street’s nickname for a surging stock market is a bull market because bulls charge, said Sam Stovall, chief investment strategist at CFRA. In contrast, bears hibernate, so bears represent a market that’s retreating.

WHEN DID THE NEW BULL MARKET BEGIN?

This latest bull market is considered to have begun on Oct. 13, 2022, a day after the S&P 500 closed at its most recent low of 3,577.03.

WHY HAS THE MARKET RALLIED?

Largely because the economy has defied predictions by not falling into a recession, at least not yet.

Markets tumbled last year on fears about how the worst inflation in decades would ravage the economy. More precisely, Wall Street got spooked by the aggressive measures the Federal Reserve took to combat high inflation.

The Fed has yanked interest rates to their highest level since 2007, up from virtually zero early last year. The aim was to drive down inflation by slowing the economy and dragging down prices for stocks, bonds and other investments. That left many investors bracing for a recession for months, but a remarkably resilient job market has kept the economy afloat.

Inflation, meanwhile, has eased off since hitting a peak last summer. That has Wall Street hoping for the Fed to soon stop hiking interest rates.

SO EVERYTHING’S FINE?

Hardly. The Fed is likely still not done hiking interest rates. Even if it hold rates steady at its next meeting, which would be the first time that’s happened in more than a year, the expectation among traders is for the Fed to resume hiking in July. The hope is that will ultimately be the last rate hike, but persistent inflation could upend that.

That keeps up the pressure on the overall economy and particularly on the banking and manufacturing industries, which have already shown some cracks.

Most of the gains for the S&P 500 this year have come from just a small group of stocks, which critics say is unsustainable. Apple (+30%), Microsoft (+44%) and Alphabet (+25%), the companies with the highest market values in the S&P 500, all outpaced the index. Their huge size gives their movements extra weight on the index, while nearly half the stocks in the index have dropped so far in 2023.

HOW LONG DO BULL MARKETS TYPICALLY LAST?

Since 1932, bull markets have lasted an average of nearly 5 years and the S&P 500 sees a gain of 177.8%. The longest bull market started in March 2009, near the end of the Great Recession, and roamed Wall Street for almost 11 years.

WHEN WAS THE PREVIOUS BULL MARKET?

The previous bull market started on March 23, 2020, as the market recovered from a lightning-fast bear market caused by the onset of the global pandemic. That bull market was the shortest dating back to 1932, lasting about 21 months. Still, the S&P 500 more than doubled (up 114.4%).

WEREN’T WE JUST IN A BEAR MARKET?

By entering a bull market, the S&P 500 effectively put an end to the bear market that began on Jan. 3, 2022. Officially, the bear market is considered to have ended on Oct. 12, 2022.

HOW MEAN WAS THAT BEAR?

The now-deceased bear market lasted about nine months and saw a drop of 25.4%. It was rather tame as far as bear markets go. Since 1950, the average bear market has lasted 13 months and the S&P 500 fell 34.2%. Since 1929, the average bear market has lasted 19.6 months and the S&P 500 has dropped 39.4%

United States News

FILE - Leaders take their seats for a meeting of the NATO-Ukraine Council during the NATO summit in...

Associated Press

With words, deeds and arms deals, allies make the case for NATO in terms that would appeal to Trump

WASHINGTON (AP) — European allies in NATO are stepping up their military spending, just as Donald Trump wanted. They’re pointing to common interests, such as concerns over China. They’re creating American jobs by buying U.S. weapons. In words, deeds and arms deals, leaders of the United States’ partners in NATO are making the case for […]

1 hour ago

Associated Press

The UN condemns increasing gang violence and criminal activity in Haiti that is undermining peace

UNITED NATIONS (AP) — The U.N. Security Council unanimously approved a resolution condemning “in the strongest terms” the increasing gang violence and criminal activity in Haiti that is undermining peace, stability and security in the country and the region. Friday’s resolution expresses grave concern at illegal arms and ammunition flowing into Haiti and their link […]

7 hours ago

Actor Alec Baldwin reacts during his trial for involuntary manslaughter for the 2021 fatal shooting...

Associated Press

Inside the courtroom as case dismissed against Alec Baldwin in fatal shooting of cinematographer

SANTA FE, N.M. (AP) — A nearly three-year legal saga for Alec Baldwin in the fatal shooting of a cinematographer ended Friday without a verdict but with tears of relief for the actor and a small coterie of family who had settled into a somber daily routine on wooden benches inside a windowless New Mexico […]

7 hours ago

FILE - U.N. Secretary-General Antonio Guterres listens to a speech during the opening of the High-L...

Associated Press

UN chief urges funds for Palestinians, saying Israel is forcing Gazans ‘to move like human pinballs’

UNITED NATIONS (AP) — The United Nations chief appealed for funding Friday for the beleaguered U.N. agency helping Palestinian refugees in Gaza and elsewhere in the Middle East, accusing Israel of issuing evacuation orders that force Palestinians “to move like human pinballs across a landscape of destruction and death.” Secretary-General Antonio Guterres told a donor’s […]

8 hours ago

Meals on Wheels employees take advantage of an assembly line to prepare bags of food for clients, F...

Associated Press

Houston community groups strain to keep feeding and cooling a city battered by repeat storms

HOUSTON (AP) — The deafening hum of a generator was a welcome noise Thursday evening at a Houston independent living center where several dozen seniors had lost power in the wake of Hurricane Beryl. Joe and Terri Hackl, who had pulled up with the backup electricity source after delivering hundreds of meals all day, estimate […]

9 hours ago

Twin sisters Jo and Joy Banner pose for a photograph in front of their business, Fee-Fo-Lay Café, ...

Associated Press

Historically Black Cancer Alley town splits over a planned grain terminal in Louisiana

WALLACE, La. (AP) — Sisters Jo and Dr. Joy Banner live just miles from where their ancestors were enslaved more than 200 years ago in St. John the Baptist Parish, Louisiana. Their tidy Creole cottage cafe in the small, river-front town of Wallace lies yards away from property their great-grandparents bought more than a century […]

9 hours ago

Sponsored Articles

...

DESERT INSTITUTE FOR SPINE CARE

Desert Institute for Spine Care is the place for weekend warriors to fix their back pain

Spring has sprung and nothing is better than March in Arizona. The temperatures are perfect and with the beautiful weather, Arizona has become a hotbed for hikers, runners, golfers, pickleball players and all types of weekend warriors.

...

Midwestern University

Midwestern University Clinics: transforming health care in the valley

Midwestern University, long a fixture of comprehensive health care education in the West Valley, is also a recognized leader in community health care.

...

Collins Comfort Masters

Here’s 1 way to ensure your family is drinking safe water

Water is maybe one of the most important resources in our lives, and especially if you have kids, you want them to have access to safe water.

The S&P 500 is in a bull market. Here’s what that means and how long the bull might run