Bull or bear market? AI spurs rethink of traditional market measures

Wall Street's traditional definition of a bear market, a 20% drop in a major index, is being challenged by the volatility of tech indexes. The Philadelphia SE Semiconductor Index and South Korea's tech-heavy KOSPI entered bear markets in July, yet their year-to-date gains remain significant. Market strategists argue that the labels may not accurately reflect the current market conditions.

While a new measure could better reflect the volatility of indexes like SOX and KOSPI, it may not be as straightforward as the current definition. Experienced investors may rely more on their intuition rather than a fixed threshold.