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United States bear market of 2007–2009

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United States bear market of 2007–2009

The US bear market of 2007–2009 was a bear market that lasted from October 9, 2007 to March 9, 2009, encompassing the 2008 financial crisis. The S&P 500 lost approximately 50% of its value, but the duration of the bear market was just below average. The bear market was confirmed in June 2008 when the Dow Jones Industrial Average (DJIA) had fallen 20% from its October 11, 2007 high. This followed the bull market of 2002–07 and was followed by the bull market of 2009–2020. The DJIA, a price-weighted average (adjusted for splits and dividends) of 30 large companies on the New York Stock Exchange, peaked on October 9, 2007 with a closing price of 14,164 . On October 11, 2007, the DJIA hit an intra-day peak of 14,198 . The decline of 20% by mid-2008 was in tandem with other stock markets across the globe. On September 29, 2008, the DJIA had a record-breaking drop of 777 with a close at 10,365 . The DJIA hit a market low of 6,469 on March 6, 2009, having lost over 54% of its value since the October 9, 2007 high. The bear market reversed course on March 9, 2009, as the DJIA rebounded more than 20% from its low to 7924 after a mere three weeks of gains. After March 9, the S&P 500 was up 30% by mid May and over 60% by the end of the year.

Tables

· Index levels
January 1, 2007
January 1, 2007
Date
January 1, 2007
Dow Jones
12,463
% Chg.§
—
S&P 500
1,418
% Chg.§
—
Nasdaq
2,415
% Chg.§
—
October 9, 2007
October 9, 2007
Date
October 9, 2007
Dow Jones
14,164
% Chg.§
+13 %
S&P 500
1,565
% Chg.§
+10 %
Nasdaq
2,803
% Chg.§
+16 %
Notes
The day the DJIA and S&P 500 peaked.
October 31, 2007
October 31, 2007
Date
October 31, 2007
Dow Jones
13,930
% Chg.§
−1 %
S&P 500
1,549
% Chg.§
−1 %
Nasdaq
2,859
% Chg.§
+1 %
Notes
The day the NASDAQ peaked.
January 2, 2008
January 2, 2008
Date
January 2, 2008
Dow Jones
13,043
% Chg.§
−6 %
S&P 500
1,447
% Chg.§
−6 %
Nasdaq
2,609
% Chg.§
−8 %
June 27, 2008
June 27, 2008
Date
June 27, 2008
Dow Jones
11,346
% Chg.§
−13 %
S&P 500
1,278
% Chg.§
−11 %
Nasdaq
2,315
% Chg.§
−11 %
Notes
The day the bear market declared.
September 12, 2008
September 12, 2008
Date
September 12, 2008
Dow Jones
11,421
% Chg.§
+0 %
S&P 500
1,251
% Chg.§
−2 %
Nasdaq
2,261
% Chg.§
−2 %
Notes
Levels before the bankruptcy of Lehman Brothers.
November 4, 2008
November 4, 2008
Date
November 4, 2008
Dow Jones
9,625
% Chg.§
−15 %
S&P 500
1,005
% Chg.§
−19 %
Nasdaq
1,780
% Chg.§
−21 %
Notes
Election Day
January 1, 2009
January 1, 2009
Date
January 1, 2009
Dow Jones
8,776
% Chg.§
−8 %
S&P 500
903
% Chg.§
−10 %
Nasdaq
1,577
% Chg.§
−11 %
January 20, 2009
January 20, 2009
Date
January 20, 2009
Dow Jones
7,949
% Chg.§
−9 %
S&P 500
805
% Chg.§
−10 %
Nasdaq
1,440
% Chg.§
−8 %
Notes
Inauguration of Barack Obama
March 9, 2009
March 9, 2009
Date
March 9, 2009
Dow Jones
6,547
% Chg.§
−17 %
S&P 500
676
% Chg.§
−15 %
Nasdaq
1,268
% Chg.§
−11 %
Notes
The day the DJIA, S&P 500 and NASDAQ bottomed.
October 9, 2007 to March 9, 2009
October 9, 2007 to March 9, 2009
Date
October 9, 2007 to March 9, 2009
Dow Jones
−7,617
% Chg.§
−53 %
S&P 500
−888
% Chg.§
−56 %
Nasdaq
−1,590
% Chg.§
−55 %
Notes
Cumulative change (from peak to bottom)
Date
Dow Jones
% Chg.§
S&P 500
% Chg.§
Nasdaq
% Chg.§
Notes
January 1, 2007
12,463
—
1,418
—
2,415
—
October 9, 2007
14,164
+13 %
1,565
+10 %
2,803
+16 %
The day the DJIA and S&P 500 peaked.
October 31, 2007
13,930
−1 %
1,549
−1 %
2,859
+1 %
The day the NASDAQ peaked.
January 2, 2008
13,043
−6 %
1,447
−6 %
2,609
−8 %
June 27, 2008
11,346
−13 %
1,278
−11 %
2,315
−11 %
The day the bear market declared.
September 12, 2008
11,421
+0 %
1,251
−2 %
2,261
−2 %
Levels before the bankruptcy of Lehman Brothers.
November 4, 2008
9,625
−15 %
1,005
−19 %
1,780
−21 %
Election Day
January 1, 2009
8,776
−8 %
903
−10 %
1,577
−11 %
January 20, 2009
7,949
−9 %
805
−10 %
1,440
−8 %
Inauguration of Barack Obama
March 9, 2009
6,547
−17 %
676
−15 %
1,268
−11 %
The day the DJIA, S&P 500 and NASDAQ bottomed.
October 9, 2007 to March 9, 2009
−7,617
−53 %
−888
−56 %
−1,590
−55 %
Cumulative change (from peak to bottom)

References

  1. Dow Hits Bear-Market Territory, Signaling Woe for EconomyWall Street Journal, June 28, 2008
    https://www.wsj.com/articles/SB121460787893112069?mod=googlenews_wsj
  2. Michael M. Grynbaum Gloom Descends Over Wall Street Again The New York Times, June 27, 2008
    https://www.nytimes.com/2008/06/27/business/27stox.html?_r=2&hp=&adxnnl=1&oref=slogin&adxnnlx=1214660121-tn0hN3l4qN9l8z9nrgJryA
  3. Elizabeth Stanton Dow Average's Drop Into Bear Market May Signal Losses July 3, 2008. Archived July 10, 2008, at the Way
    https://www.bloomberg.com/apps/news?pid=20601213&sid=aghpdCq8n9xo&refer=home
  4. Alexandra Twin Bear scare on Wall Street CNNMoney, June 27, 2008
    https://web.archive.org/web/20110606085528/http://money.cnn.com/2008/06/27/markets/markets_newyork/?postversion=2008062717
  5. Instant View: Dow industrials enter bear market territory Reuters, Jun 27, 2008
    https://www.reuters.com/article/ousivMolt/idUSN2732335520080627
  6. CNNMoney Market Report - Mar. 6, 2009
    https://web.archive.org/web/20090307121018/http://money.cnn.com/2009/03/06/markets/markets_newyork/index.htm
  7. ^DJI: Historical Prices for Dow Jones Industrial Average
    https://finance.yahoo.com/q/hp?s=^DJI
  8. "Bears Are Wary as Bull Returns"
    https://www.wsj.com/articles/SB123811041706752903
  9. ^GSPC: Historical prices for S&P 500
    https://finance.yahoo.com/q/hp?s=^GSPC
  10. ^IXIC: Historical prices for NASDAQ Composite
    https://finance.yahoo.com/q/hp?s=^IXIC
  11. Laurie Kellman: Whose economy is it anyway? mlive /Associated Press, March 05, 2009
    http://www.mlive.com/politics/index.ssf/2009/03/whose_economy_is_it_anyway_dem.html
  12. US Recession in 2007 - Third Leg of the Bear Market Likely, by Paul Lamont, The Market Oracle, February 5, 2007
    http://www.marketoracle.co.uk/Article307.html
  13. Oil Prices Drive Stocks to Bear Market The Washington Post July 6, 2008
    https://www.washingtonpost.com/wp-dyn/content/article/2008/07/04/AR2008070400040.html
  14. Tom Petruno Obama bad for stocks? It's not that simple Los Angeles Times, March 7, 2009
    http://www.latimes.com/news/columnists/la-fi-petruno7-2009mar07,0,89858.column
  15. Dick Meyer Wall Street Blame Game: Tag, You're It, NPR, March 5, 2009
    https://www.npr.org/templates/story/story.php?storyId=101453332
  16. Michael J. Panzner:Up Next: The Obama Bounce? Huffington Post, March 7, 2009
    http://www.huffingtonpost.com/michael-j-panzner/up-next-the-obama-bounce_b_172778.html
  17. Robert Reich:Is Obama responsible for Wall Street's meltdown?, Salon, March 5, 2009
    http://www.salon.com/opinion/feature/2009/03/05/populist_rage/
  18. Justin Fox:A Look Back at Bush's Economic Missteps Time (magazine), March 08, 2009
    https://web.archive.org/web/20090119141928/http://www.time.com/time/specials/packages/article/0,28804,1872229_1872230,00.html
  19. Ron Paul:Repeal Sarbanes–Oxley!, Ron Paul speech to U . House of Representatives, April 14, 2005 Archived July 30, 2007,
    http://www.house.gov/paul/congrec/congrec2005/cr041405.htm
  20. Ron Paul:The Bailout Surge, Ron Paul, November 24, 2008 Archived February 28, 2009, at the Wayback Machine
    http://www.house.gov/htbin/blog_inc?BLOG,tx14_paul,blog,999,All,Item%20not%20found,ID=081124_2545,TEMPLATE=postingdetail.shtml
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