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The Markets
by Proactive
Proactive UK has moved.
Coverage of London’s small caps continues on proactiveinvestors.com
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The Markets
by Proactive
Proactive UK has moved.
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Go to Proactive UK
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The Markets
by Proactive
Proactive UK has moved.
Small-cap coverage continues on .com
Go to Proactive UK

Financial Services

S&P 500 pushes into bull market territory

It might not feel like it, but a key US benchmark index has entered bull market territory after rallying from lows last year.

Buoyed by gains in big technology stocks, the broad-based S&P 500 index closed Thursday at 4,293.93 and crossed the threshold that separates a bear market from a bull market.

The index needed to top 4,292.44 to take it 20% higher than the levels it reached on 12 October 2022, bringing to end the bear market that began in January last year.

The most commonly accepted definition of a bull market is a 20% rise off a low, while a bear market is a 20% decline from a high, but even that is open to interpretation.

According to this, the last bear market began on 3 January 2022, when the S&P 500 closed at an all-time high, and ended on 12 October, when it bottomed out 25.4% lower.

A nine-month bear market with a drop of 25.4% is milder than the average bear market since 1950, which has lasted 13 months and seen a decline of 34.2%.

Bull markets tend to be long affairs. The average one since 1932 has lasted nearly five years and delivered a 177.8% rise, according to S&P Dow Jones Indices.

But while the S&P may be in bull market territory, concerns over economic growth in the US remain high with many economists expecting a recession, mild or otherwise, at some stage in the next 12 months.

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