Are Stocks in a Bull Market? Investors Divided as S&P 500 Rises

The S&P 500 stock index rose over 20% from its previous low in October, leading some investors to predict a new period of stock market gains. Others aren’t so convinced. 

The Details: A “bull market” is conventionally defined as a 20% rise in stock prices from a previous low. A “bear market” — like the one the S&P 500 entered in June 2022 — is the inverse, a 20% drop from a recent high. 

The Controversy: Experts at major banks disagreed about how economic factors like the Fed’s expected pause on interest rate hikes would affect the stock market. One expert from Goldman Sachs said the S&P could reach 4,500 — about 260 points below its pandemic-era peak — by the end of the year. However, experts from Morgan Stanley and Citi were less optimistic, saying the index could fall to 4,000. The disagreement partly stems from the uneven distribution of gains; while some companies' stocks are rising, others are stagnant or falling. 

How the Media Covered It: Coverage was mainly found in business outlets, most of which AllSides rates as Center or Lean Left. Some outlets, like CNN Business (Lean Left bias) appeared quick to proclaim a bull market. Others were more skeptical; a Reuters (Center bias) headline qualified the news by adding, “maybe.”