U.S. Stock Market Historical Bear Markets

1️⃣ 1929–1932: Great Depression Bear Market

Trigger: Wall Street Crash
Core Reasons + Process:
Prior leveraged speculation was rampant, and stock prices severely deviated from fundamentals; interest rate hikes and liquidity tightening burst the bubble, triggering a chain of sell-offs; subsequently, a wave of bank failures spread, leading to a collapse of the credit system, an increase in bankruptcies and unemployment, and the stock market continued to decline in panic.

2️⃣ 1973–1974: Stagflation Bear Market

Trigger: Oil Crisis
Core Reasons + Process:
Soaring oil prices drove up inflation, and corporate costs skyrocketed; economic growth stagnated or even declined, resulting in “stagflation”; policies wavered between anti-inflation and growth protection, leading to a double whammy on profits and valuations, and the market continued to slide with long-term low confidence.

3️⃣ 1987: Black Monday

Trigger: Black Monday
Core Reasons + Process:
High valuations combined with rising interest rate pressures left the market fragile; program trading and portfolio insurance strategies triggered automatic sell-offs, leading to a rapid liquidity drain; panic selling amplified losses in a very short time, resulting in a single-day crash.

4️⃣ 2000–2002: Dot-com Bubble Burst

Trigger: Dot-com Bubble
Core Reasons + Process:
Internet concepts drove extreme valuation inflation, with many companies lacking profit support; interest rate hikes and disappointing earnings led to a reversal of expectations; funds fled growth stocks, the tech sector fell continuously, the bubble gradually cleared, and the bear market prolonged.

5️⃣ 2007–2009: Global Financial Crisis

Trigger: Subprime Mortgage Crisis
Core Reasons + Process:
The real estate bubble combined with rampant subprime mortgages magnified risks through financial innovation; falling house prices triggered a wave of defaults, and the asset quality of financial institutions deteriorated; the credit market froze, systemic risks erupted, and the stock market sharply declined amid deleveraging.

6️⃣ 2020: Pandemic Flash Crash

Trigger: COVID-19 Pandemic
Core Reasons + Process:
The pandemic caused a sudden halt in global economic activity, with supply chains and demand shrinking simultaneously; the market quickly priced in uncertainty, triggering panic selling; however, massive fiscal and monetary stimulus rapidly injected liquidity, and the market quickly rebounded.

7️⃣ 2022: Rate Hike Bear Market

Trigger: 2022 Global Inflation Crisis
Core Reasons + Process:
Post-pandemic demand recovery combined with supply constraints led to high inflation; the Fed's aggressive rate hikes and balance sheet reduction rapidly tightened liquidity; rising risk-free rates compressed valuations, growth stocks led the decline, and the market experienced systemic valuation repricing.

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