The Dow just joined the S&P 500 in a bear market: What investors need to know

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The Dow just joined the S&P 500 in a bear market: What investors need to know
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The Dow Jones Industrial Average on Monday closes in a bear market, joining the S&P 500. Here's what history says to expect next.

The blue-chip gauge on Monday fell 329.60 points, or 1.1%, to close at 29,260.81. That left the Dow DJIA 20.5% below its Jan. 4 record finish of 36,799.65. A pullback of 20% or more is widely considered to mark a bear market.

The blue-chip gauge on Monday fell 329.60 points, or 1.1%, to close at 29,260.81. That left the Dow DJIA 20.5% below its Jan. 4 record finish of 36,799.65. A pullback of 20% or more is widely considered to mark a bear market. According to Dow Jones Market Data, the average Dow bear market sees a peak-to-trough decline of 35.5% and a median decline of 35.9%.

The S&P 500 SPX confirmed its entry into a bear market in June, falling more than 20% from its Jan. 3 record. The large-cap benchmark on Monday fell 38.19 points, or 1%, to close at 3,655.04, taking out its previous 2022 closing low set on June 16, for its lowest close since Dec. 14, 2020.

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