Coronavirus wall street suffers biggest drop since 2008
You're referring to the significant market downturn that occurred on March 12, 2020, in response to the rapid spread of the COVID-19 pandemic.
On that day, the Dow Jones Industrial Average (DJIA) plummeted 2,997 points, or 12.9%, to close at 21,200. This was the largest single-day point drop in the history of the DJIA, surpassing the previous record set on Black Monday in 1987.
The S&P 500 index also suffered its largest one-day decline since 2008, falling 12.1% to 2,386. The Nasdaq Composite index dropped 12.6% to 7,497.
The market sell-off was triggered by a combination of factors, including:
- Widespread lockdowns and travel restrictions implemented by governments around the world to slow the spread of the virus.
- Concerns about the potential economic impact of the pandemic, including supply chain disruptions, reduced consumer spending, and increased unemployment.
- The rapid decline in oil prices, which fell by over 20% on the day, as demand for energy decreased due to reduced economic activity.
- The announcement of a global recession by the International Monetary Fund (IMF), which further heightened market anxiety.
The market volatility was so extreme that it led to a temporary halt in trading on the New York Stock Exchange (NYSE) and other major exchanges. The Federal Reserve and other central banks responded by implementing emergency measures to stabilize the financial system, including cutting interest rates and providing liquidity to markets.
While the market has since recovered some of its losses, the pandemic continues to pose significant challenges to the global economy, and the impact on Wall Street is likely to be felt for some time to come.