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For instance, during the onset of the COVID-19 pandemic in early 2020, the S&P 500 saw a dramatic decline of 34% in just a month due to panic and uncertainty. However, the market rebounded within five months, illustrating its tendency to react before the actual economic recovery takes place. In contrast, the U.S. economy experienced a much slower recovery, shrinking significantly and taking two years to return to pre-pandemic levels.