This bear market took a relatively long time to develop from the market peak in 2000, but once the 20% decline was reached, the price never came close to making a 50% retracement of the downwards move from the peak. The S&P 500 Index fell by almost 37% from its all-time high in February 2020 over only five weeks, and all the major stock market indices of the G7 group of nations fell by more than 20% over the same period. 20% drop from the most recent peak) for the first time in 11 years, ending the longest bull market in American stock market history. [24][25][26], On Monday, 17 February 2020, Asia-Pacific stock markets closed down but European stock markets closed up,[28][29] while U.S. stock markets were closed in observance of Presidents Day. Within only 15 trading days, the Index crashed and dropped by more than 20% in value from its high. [479][480] Reuters reported that "If Saudi Arabia failed to rein in output, US senators called on the White House to impose sanctions on Riyadh, pull out US troops from the kingdom and impose import tariffs on Saudi oil."[481]. It lost 2,997.10 points to close at 20,188.52. The crash of 2008 was similar, but demand was preserved due to a coordinated program of massive government borrowing disguised as other measures. [1][2][3] The crash signalled the beginning of the COVID-19 recession. } The crash however would only cause a short-lived bear market, and in April global stock markets re-entered into a bull market. width: 100%; [240], The US's Dow Jones Industrial Average and S&P 500 Index suffered from the greatest single-day percentage fall since the 1987 stock market crash, as did the UK's FTSE 100, which fell 10.87%. Kimberly Amadeo has 20 years of experience in economic analysis and business strategy. In addition, bond yields across the board were at historically low levels. This means any notable decline in equities presents the perfect opportunity for long-term investors to put their money to work in innovative businesses and/or time-tested companies that make money. Fastest Plunge Of 20% On Record", "Wall Street plunges, bringing record bull run to an end", "Oil drops as much as 8%, on pace for worst week in more than a decade", "10-year Treasury yield rises even as stocks tumble into bear market", "Coronavirus: FTSE 100, Dow, S&P 500 in worst day since 1987", "Canadian stock market bloodbath: Worst one-day fall in 80 years", "Borse, Piazza Affari chiude a -16,92%. [461] The South African Reserve Bank announced that it would ease banking accounting and capital regulations to release R300 billion in credit,[462] while the Bank of Israel announced that it would ease its capital requirements to facilitate greater lending by its banking system as well. [264] The RTS Index on the Moscow Exchange finished 27% down on the week,[265][266] the Tadawul All-Share Index on the Saudi Stock Exchange finished 17% percent down,[267] the benchmark index on the Borsa Istanbul finished 15% down,[268] and the Indice de Precios y Cotizaciones on the Mexican Stock Exchange finished 9% down. For an explanation regarding the title "Black Thursday", see: Dow falling 1,191 points, its largest one-day drop, emergency appropriations and pandemic countermeasures bill, Organization of the Petroleum Exporting Countries, Saudi Arabia and Russia both announced increases in oil production on 7 March, Speaker of the U.S. House of Representatives, appropriations and pandemic countermeasures bill, 2020 Congressional insider trading scandal, "Global stocks head for worst week since the financial crisis amid fears of a possible pandemic", "Seven major Asia-Pacific markets have tumbled into correction territory", "Goldman Sachs now says US GDP will shrink 24% next quarter amid the coronavirus pandemic - which would be 2.5 times bigger than any decline in history | Markets Insider", "What The 1918 Flu Pandemic Teaches Us About The Coronavirus Outbreak", "A Market Crash Was Coming, Coronavirus Was Just the Spark", "Top three reasons behind the stock market crash 2020: is it coronavirus, oil price war or vanished liquidity? font-weight: bold !important; Even though Biden wants to increase corporate taxation, which would limit earnings growth, Wall Street is far more concerned for now with the possibility of an uncertain election. [361] The Federal Reserve announced that it would expand its asset purchases to include municipal bonds,[362] while the Reserve Bank of Australia announced that would also purchase A$5 billion ($2.9 billion) in municipal bonds. [160] Canada's S&P/TSX Composite Index finished the day off by more than 10%. The call sellers, buyers of stock to cover their call sells, pushes the stock price up and draws more option call buyers in, which drives up premiums, which attracts call sellers, and the virtuous circle spins with a progression of ever higher stock prices. [15], Though the crash began on 20 February, selling was intensified during the first half of March to mid-March. You can trade stock market indices short or long with any of our featured stock brokers. line-height: 26px; [73], On 26 February, stock markets worldwide finish with mixed records,[74][75][76] while oil prices fell for the fourth session in a row while the yields on 10-year and 30-year U.S. Treasury securities fell 1.30% and 1.80% respectively. [177] In India, the BSE SENSEX closed 1,942 points lower at 35,635 while the NSE Nifty 50 was down by 538 points to 10,451. According to MarketWatch, there are 5 reasons for the recent (and ongoing) dip in the market: COVID-19 – the coronavirus – it’s spreading and fears are escalating. .right291 img { This should become obvious by the end of May 2020 at the latest, and the market’s acceptance of that will be signaled by the S&P 500 Index trading firmly below 2200. The stock market crash of 1929 – considered the worst economic event in world history – began on Thursday, October 24, 1929, with skittish investors trading a record 12.9 million shares. The same thing happened in the 1973 bear market, and also in the 1929 stock market crash. order: 0; Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services.