What is a lowering market? Are we in one?

President Trump’s world prices have sent stock markets worldwide in a fall, and the S&P 500 has briefly entered the bear market for the first time since 2022.

Mr. Trump seemed incessant by the decline. He pointed out on Monday that he did not intend to retreat on the prices, insisting that they would report “billions of dollars” in income and that other countries had “abused” from the United States with its trade policies.

Here’s what you need to know about a lower market.

What is a lowering market?

A lowering market is a Wall Street term for a slowdown in the sustained market, when a stock market index closes 20% compared to its last peak.

The 20% threshold signals the pessimism of investors on the future of the economy.

Are we on a lower market now?

The S&P 500, the US reference stock index opened its doors on Monday. The index was already down 17.4% compared to its last summit on February 19, and if it closes Monday trading with a loss of at least 3.1%, this would make it pour into a lower market.

Morgan Stanley analysts have warned that even greater decrease is possible. Goldman Sachs reduced its economic growth forecasts on Monday, citing an increasing risk of American recession next year.

The Nasdaq composite index, as well as the Russell 2000 index of small businesses which are more vulnerable to economic prospects, are already on a lower market.