Analysis: The S&P 500 index has reached the edge of a bear market, suggesting an economic recession

According to BlockBeats, on April 7th, futures linked to the S&P 500 index fell further on Monday, dropping more than 20% from their historical high. This benchmark stock index, which is the most closely watched in the US stock market, is about to confirm a bear market. The Dow Jones Industrial Average futures also fell 20% from historical highs, while the Nasdaq index confirmed last week that it was in a bear market as concerns about an economic recession following Trump's comprehensive tariffs hit global stock markets. According to a widely used definition, if an index closes more than 20% below its historical closing high, the index is considered to have entered a bear market. The last time the S&P 500 index confirmed that it was in a bear market zone was in June 2022, when investors were concerned about whether the Federal Reserve could curb post pandemic inflation without triggering an economic recession. Bear markets typically lead to economic recession and persist until investors believe that the worst stage of the recession has passed. According to data from investment research firm CFRA, out of the 12 bear markets since 1948, 9 have been accompanied by economic downturns. (Golden Ten)