Nasdaq Composite enters bear market after closing more than 20% below record high

The Dow Jones Industrial Average fell by about 800 points on Monday as well.
Image
Wall Street
Trader on New York Stock Exchange
(BRYAN R. SMITH/AFP via Getty Images)

The Nasdaq Composite Index on Monday confirmed a bear market after closing more than 20% down from its record closing high on Nov. 19 as Russia's invasion of Ukraine continues. 

The Nasdaq Composite, which is a weighted index of more than 3,000 stocks, closed Monday around 12,831, decreasing by more than 480 points, or 3.62% in one day. This stands in sharp contrast to its November high of 16,057.

A bear market occurs when an index or market falls by 20% from recent highs, Investopedia stated.

This is the United States' first bear market since 2020 at the start of the COVID-19 pandemic. 

The Dow Jones Industrial Average fell by about 800 points on Monday as well, " falling well below the 10% required to put the blue-chip index into correction territory," as reported by Market Watch.

In Europe on Monday, where tensions are especially high due to Russian President Vladimir Putin's invasion of Ukraine, Germany entered a bear market after stocks fell by more than 4%. The German DAX index has now officially fallen 20% from its January high, The Wall Street Journal reported.

Crude oil prices, on the other hand, are at their highest point since 2008.