Overview
- The S&P 500 sat about 9% below its record at one point as the war in Iran jolted markets.
- A 10% drop is widely called a correction and a 20% decline or more is called a bear market.
- Bear markets most often show up with recessions or shrinking earnings, unlike routine corrections that can happen in good times.
- Forecasts call for double-digit S&P 500 profit growth over the next two years, which analysts say can limit deeper losses.
- In 2011 and 2018, earnings kept growing and stocks returned to record highs within months.