All three major averages slipped on Friday, but managed to notch a positive week, even as poor earnings from Snap dragged tech shares.
Snap's stock cratered 39%, after the company pointed to slowing ad demand. Other social media and technology stocks got caught in the slump. Shares of Meta Platforms and Pinterest fell about 7.6% and 13.5%, respectively, while Alphabet lost more than 5%.
It was a reversal from earlier this week when a rally driven by better-than-expected results in tech stocks had some investors hopeful that the bear market has found its bottom.
"Snap has managed to snap the uptrend in the Nasdaq by reporting disappointing earnings, which has created a cascading effect on the S&P," said Sam Stovall, chief investment strategist at CFRA Research.
"This is just an example of the volatility that investors should expect as earnings are reported, and, therefore, could cause fluctuations in prices in response to better than or worse than results," Stovall added.
Wall Street is coming off of a strong week for markets, with the S&P 500 briefly hitting the 4,000 level on Friday for the first time since June 9.
Still, some strategists do not believe the bear market is over. Since World War II, nearly two-thirds of one-day rallies of 2.76% or more in the S&P 500 occurred during bear markets, with 71% occurring before the bottom was in, according to a note this week from CFRA's Stovall.
Stovall believes the broader market index could rally as high as the 4,200 level before coming back down to test June lows.
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