Market Extra: Wall Street is officially in a bear market What strategists say investors should do

The U.S. stock market met popular criteria for a bear market this week a decline by the S&P 500 taking the U.S. large-cap benchmark down by more than 20% from its record close in January. Investors, no doubt, are wondering how far stocks might fall from here, and what to do next.

The S&P 500 SPX, -3.25% met the bear-market threshold on Monday and has largely remained under pressure this week aside from a Wednesday bounce following the Federal Reserves 75 basis point rate hike, its largest in nearly 28 years.

Fears that drastic rate hikes may trigger the recession sometime in the next year are hanging over markets, analysts say.

What should investors do?

Strategists said the current market decline is likely far from over.

According to George Ball, chairman of the investment firm Sanders Morris Harris, bear markets bring an average 38% decline in stocks from peak to trough, which suggests that there may be further downside risk ahead.Through Thursdays close, the S&P 500 was down 23.6% from its Jan. 3 peak finish.