Glossary · Defined term
Bull market
A bull market is a prolonged broad price advance, commonly defined as a gain of 20 percent or more from recent lows.
Last updated Oct 2, 2026
What it means
A bull market is a prolonged period in which investment prices rise broadly, commonly defined as a gain of 20 percent or more from recent lows. Like its bear-market counterpart, the term describes a major index or the market as a whole, not one stock's good quarter. Bull markets usually reflect growing corporate earnings, low unemployment, and rising investor confidence, and they have historically lasted far longer than bear markets. Optimism can stretch valuations as the rally continues, which is why late-stage bull markets often feel euphoric. The 20 percent line is a convention, not a law of physics, but it is the widely used marker.
An example
For illustration, an index that bottoms at 4,000 and climbs to 4,900 has gained 22.5 percent, crossing into bull-market territory by the standard definition. A 6 percent bounce after a selloff would be called a relief rally, not a bull market; the term implies a sustained, broad advance.