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Market Extra: Dow, S&P 500 would enter bear market with a close below these levels

Major stock indexes trade near levels that would mark the start of a bear market as early Tuesday gains fade. Here’s what it would take to end an 11-year bull run. Read More...

Major U.S. stock indexes saw choppy trading Tuesday, putting in a mixed performance after hitting levels close to the thresholds that would mark the start of a bear market.

Stocks suffered their largest one-day plunge since 2008 on Monday, coinciding with the 11th anniversary of the start of the longest bull market in history. A bear market is widely defined as a drop of 20% from a recent peak. Stocks had dropped into correction mode — defined as a pullback of 10% — late last month as fears over the economic impact of the coronavirus outbreak began to rise.

Here are the levels where key indexes would need to close to enter bear territory, according to Dow Jones Market Data:

S&P 500 US:SPX — 2,708.92

Dow Jones Industrial Average US:DJIA — 23,641.14

Nasdaq Composite US:COMP — 7,853.74

All three indexes had traded at record highs just last month, with the S&P 500 notching a record close on Feb. 19. A close below the bear threshold on Tuesday, just 14 trading days after its last record, would mark the fastest fall from an all-time high to a bear market in history and the fastest fall from a recent peak into a bear since a three-day tumble in July 1933, according to Dow Jones Market Data.

Monday’s decline left the S&P 500 down 18.9% from its all-time closing high, finishing at 2,746.56. The Dow Jones Industrial Average dropped over 2,000 points, or 7.8%, to end at 23,851.02, down 19.3% from its record close. The Nasdaq Composite ended at 7,950.68, down 19% from all-time closing high.

See:How an ‘oil shock’ and coronavirus combined to spark a global stock-market selloff

Ken Jimenez contributed to this article.

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