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On 20 February 2020,
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, ...
s across the world suddenly crashed after growing instability due to the COVID-19 pandemic. It ended on 7 April 2020. Beginning on 13 May 2019, the yield curve on
U.S. Treasury securities United States Treasury securities, also called Treasuries or Treasurys, are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Since 2012, U.S. go ...
inverted, and remained so until 11 October 2019, when it reverted to normal. Through 2019, while some economists (including
Campbell Harvey Campbell Russell "Cam" Harvey (born June 23, 1958) is a Canadian economist, known for his work on asset allocation with changing risk and risk premiums and the problem of separating luck from skill in investment management. He is currently the J. ...
and former
New York Federal Reserve The Federal Reserve Bank of New York is one of the 12 Federal Reserve Banks of the United States. It is responsible for the Second District of the Federal Reserve System, which encompasses the State of New York, the 12 northern counties of Ne ...
economist Arturo Estrella) argued that a recession in the following year was likely, other economists (including the managing director of Wells Fargo Securities Michael Schumacher and San Francisco Federal Reserve President Mary C. Daly) argued that inverted yield curves may no longer be a reliable recession predictor. The yield curve on U.S. Treasuries would not invert again until 30 January 2020 when the World Health Organization declared the COVID-19 outbreak to be a Public Health Emergency of International Concern, four weeks after local health commission officials in Wuhan, China announced the first 27 COVID-19 cases as a viral pneumonia strain outbreak on 1 January. The curve did not return to normal until 3 March when the Federal Open Market Committee (FOMC) lowered the federal funds rate target by 50
basis point A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. The related term ''permyriad'' means one hundredth of 1 percent. Changes of interest rates are often stated in basis points. If ...
s. In noting decisions by the FOMC to cut the federal funds rate by 25 basis points three times between 31 July and 30 October 2019, on 25 February 2020, former U.S. Under Secretary of the Treasury for International Affairs Nathan Sheets suggested that the attention of the
Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
to the inversion of the yield curve in the U.S. Treasuries market when setting
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for federal funds, very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money s ...
may be having the perverse effect of making inverted yield curves less predictive of recessions. During 2019, the
IMF The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glob ...
reported that the world economy was going through a 'synchronized slowdown', which entered into its slowest pace since the
Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
. Weakness was exhibited in the
consumer market A consumer is a person or a group who intends to order, or uses purchased goods, products, or services primarily for personal, social, family, household and similar needs, who is not directly related to entrepreneurial or business activities. ...
as global markets began to suffer through a 'sharp deterioration' of manufacturing activity. Global growth was believed to have peaked in 2017, when the world's total industrial sector output began to start a sustained decline in early 2018. The
IMF The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glob ...
blamed 'heightened trade and geopolitical tensions' as the main reason for the slowdown, citing
Brexit Brexit (; a portmanteau of "British exit") was the Withdrawal from the European Union, withdrawal of the United Kingdom (UK) from the European Union (EU) at 23:00 Greenwich Mean Time, GMT on 31 January 2020 (00:00 1 February 2020 Central Eur ...
and the China – United States trade war as primary reasons for slowdown in 2019, while other economists blamed liquidity issues. The crash caused a short-lived bear market, and in April 2020 global stock markets re-entered a bull market, though U.S. market indices did not return to January 2020 levels until November 2020. The crash signaled the beginning of the COVID-19 recession. The 2020 stock market crash followed a decade of economic prosperity and sustained global growth after recovery from the
Great Recession The Great Recession was a period of marked general decline, i.e. a recession, observed in national economies globally that occurred from late 2007 into 2009. The scale and timing of the recession varied from country to country (see map). At ...
. Global unemployment was at its lowest in history, whilst quality of life was generally improving across the world. However, in 2020, the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
, the most impactful pandemic since the
Spanish flu The 1918–1920 influenza pandemic, commonly known by the misnomer Spanish flu or as the Great Influenza epidemic, was an exceptionally deadly global influenza pandemic caused by the H1N1 influenza A virus. The earliest documented case wa ...
, began decimating the economy. Global economic shutdowns occurred due to the pandemic, and panic buying and supply disruptions exacerbated the market. The
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...
had pointed to other mitigating factors seen pre-pandemic, such as a global synchronized slowdown in 2019, as exacerbants to the crash, especially given that the market was already vulnerable.


Crash

Though the crash began on 20 February, selling was intensified during the first half of March to mid-March. During the crash, there were multiple severe daily drops in the global stock market, the largest drop was on 16 March, nicknamed 'Black Monday II' of 12–13% in most global markets. There were two other significant dates of crashes in the stock markets, one being 9 March, nicknamed 'Black Monday I', and on 12 March, nicknamed 'Black Thursday'. To deal with the panic, banks and reserves across the world cut their interest rates, bank rates and cash flow rates, as well as offering unprecedented support to investors and markets.


17–21 February

On Monday, 17 February 2020, Asia-Pacific stock markets closed down but European stock markets closed up, while U.S. stock markets were closed in observance of Presidents Day. Oil prices fell, while the yield on 10-year U.S. Treasury securities fell to 1.59%. On 18 February, Asia-Pacific stock markets closed up, while European stock markets, the Dow Jones Industrial Average, NASDAQ Composite, and S&P 500 all closed down. Oil prices rose by more than 2%, while the yields on 10-year and 30-year U.S. Treasury securities fell to 1.54% and 1.99%. Singaporean Finance Minister Heng Swee Keat announced a $4.5 billion
fiscal stimulus In economics, stimulus refers to attempts to use monetary policy or fiscal policy (or stabilization policy in general) to stimulate the economy. Stimulus can also refer to monetary policies such as lowering interest rates and quantitative easin ...
program. On 19 February, Asia-Pacific and European stock markets closed mostly up, while the Dow Jones Industrial Average finished up and the NASDAQ Composite and the S&P 500 finished at record highs. Oil prices rose by another 2%, while yields on 10-year and 30-year U.S. Treasury securities fell to 1.56% and 2.00% respectively. The People's Bank of China and the Central Bank of the Republic of Turkey cut their repo rates by 10 and 50
basis point A basis point (often abbreviated as bp, often pronounced as "bip" or "beep") is one hundredth of 1 percentage point. The related term ''permyriad'' means one hundredth of 1 percent. Changes of interest rates are often stated in basis points. If ...
s respectively, while the
Central Bank of Argentina The Central Bank of the Argentine Republic ( es, Banco Central de la República Argentina, BCRA) is the central bank of Argentina, being an autarchic entity. Article 3 of the Organic Charter lists the objectives of this Institution: “The bank ...
cut its
bank rate Bank rate, also known as discount rate in American English, is the rate of interest which a central bank charges on its loans and advances to a commercial bank. The bank rate is known by a number of different terms depending on the country, and ...
by 400 basis points. On 20 February, stock markets worldwide closed mostly down, while oil prices fell by 1% and yields on 10-year and 30-year U.S. Treasury securities fell to 1.51% and 1.96% respectively. Bank Indonesia cut its overnight rate by 25 basis points, while the Central Bank of Brazil announced it would cut its reserve requirement on 16 March from 31% to 25%, which is expected to release R$135 billion (or $29 billion) into the
money supply In macroeconomics, the money supply (or money stock) refers to the total volume of currency held by the public at a particular point in time. There are several ways to define "money", but standard measures usually include currency in circu ...
. On 21 February, stock markets worldwide closed down on the day (with the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 closing down on the week), while oil prices fell and yields on 10-year and 30-year U.S. Treasury securities fell to 1.45% and 1.89% respectively (with the 30-year finish being an all-time low).


24–28 February

On Monday, 24 February 2020, the
Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...
and
FTSE 100 The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest marke ...
dropped more than 3% as the coronavirus outbreak spread worsened substantially outside China over the weekend. This follows benchmark indices falling sharply in continental Europe after steep declines across Asia. The DAX, CAC 40 and IBEX 35 each fell by about 4% and the FTSE MIB fell over 5%. There was a large fall in the price of oil and a large increase in the price of gold, to a 7-year high. Yields on 10-year and 30-year U.S. Treasury securities fell to 1.36% and 1.81% respectively. On 25 February, stock markets worldwide closed down, while oil prices fell to their lowest level in more than a year and the yields on 10-year and 30-year U.S. Treasury securities fell to new record lows of 1.31% and 1.80% respectively. Indonesian Finance Minister Sri Mulyani announced a $742 million
fiscal stimulus In economics, stimulus refers to attempts to use monetary policy or fiscal policy (or stabilization policy in general) to stimulate the economy. Stimulus can also refer to monetary policies such as lowering interest rates and quantitative easin ...
program. On 26 February, stock markets worldwide finish with mixed records, 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. The
Bank of Korea The Bank of Korea (BOK; ) is the central bank of the Republic of Korea and issuer of Korean Republic won. It was established on 12 June 1950 in Seoul, South Korea. The bank's primary purpose is price stability. For that, the bank targe ...
declined to cut its overnight rate. On 27 February, due to mounting worries about the COVID-19 pandemic, stock markets in Asia-Pacific and Europe saw 3–5% declines, with the NASDAQ-100, the
S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of ...
, and the
Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...
posting their sharpest falls since 2008 (and the Dow falling 1,191 points, its largest one-day drop since the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
). Oil prices sank to their lowest level in over a year, while yields on 10-year and 30-year U.S. Treasury securities fell to 1.28% and 1.77% respectively. European Central Bank President Christine Lagarde indicated that while the
European Central Bank The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's most important centra ...
was monitoring the outbreak, it was not yet causing a long-term impact on inflation and thus did not yet require a
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for federal funds, very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money s ...
response. On 28 February, stock markets worldwide reported their largest single-week declines since the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
, while oil futures saw their largest single week decline since 2009 and the yields on 10-year and 30-year U.S. Treasury securities fell to new record lows at 1.12% and 1.30% respectively. Outgoing Bank of England Governor Mark Carney stated that the British economy (which saw stagnation and car manufacturing declines in the 4th quarter of 2019) was being impacted by the outbreak because it relies heavily on tourism revenues and international manufacturing supply lines. Federal Reserve Chair
Jerome Powell Jerome Hayden "Jay" Powell (born February 4, 1953) is an American attorney and investment banker who has served as the 16th chair of the Federal Reserve since 2018. After earning a degree in politics from Princeton University in 1975 and a ...
stated that the outbreak was posing "evolving risks to economic activity" and that the
Federal Reserve The Federal Reserve System (often shortened to the Federal Reserve, or simply the Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a ...
would use monetary policy to "act as appropriate to support the economy" but that "The
fundamentals Fundamental may refer to: * Foundation of reality * Fundamental frequency, as in music or phonetics, often referred to as simply a "fundamental" * Fundamentalism, the belief in, and usually the strict adherence to, the simple or "fundamental" idea ...
of the
U.S. economy The United States is a highly developed mixed-market economy and has the world's largest nominal GDP and net wealth. It has the second-largest by purchasing power parity (PPP) behind China. It has the world's seventh-highest per capita GD ...
remain strong." Outgoing Malaysian Prime Minister Mahathir Mohamad announced a RM20 billion fiscal stimulus package. Ultimately, from 24 to 28 February,
stock market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include ''securities'' listed on a public stock exchange, ...
s globally plummeted several percentage points, while on Wall Street the indices were down at least 10%. It was the fastest correction in market history from all-time high, taking merely six days to enter into correction territory. The sudden drop in late February was attributed to fears that China could produce a global economic shock, primarily due to quarantines imposed by the state to combat the COVID-19 pandemic, which at the time was classified as an epidemic. Within weeks, stocks fell sufficiently enough to enter bear market territory. Concerning reports of the viruses spread in
South Korea South Korea, officially the Republic of Korea (ROK), is a country in East Asia, constituting the southern part of the Korea, Korean Peninsula and sharing a Korean Demilitarized Zone, land border with North Korea. Its western border is formed ...
,
Italy Italy ( it, Italia ), officially the Italian Republic, ) or the Republic of Italy, is a country in Southern Europe. It is located in the middle of the Mediterranean Sea, and its territory largely coincides with the homonymous geographical ...
and
Iran Iran, officially the Islamic Republic of Iran, and also called Persia, is a country located in Western Asia. It is bordered by Iraq and Turkey to the west, by Azerbaijan and Armenia to the northwest, by the Caspian Sea and Turkmeni ...
also prompted fear in investors, mounting to a mass sell-off in Asia-Pacific stock markets as well as European ones.


2–6 March

Over the preceding weekend, Bank of Japan Governor
Haruhiko Kuroda is a Japanese banker and a former Ministry of Finance government official. He serves as the 31st and current Governor of the Bank of Japan (BOJ). He was formerly the President of the Asian Development Bank from 1 February 2005 to 18 March 2013. ...
stated that the Bank of Japan would "strive to stabilise markets and offer sufficient liquidity via market operations and asset purchases", and the Bank of Japan subsequently announced that it would repurchase up to ¥500 billion ($4.6 billion) worth of government bonds. On Monday 2 March, European and Asia-Pacific stock markets mostly ended the previous week's consecutive daily losses, while in the United States, the S&P 500 gained 3.9%, the NASDAQ Composite gained 3.7%, and the Dow Jones Industrial Average finished 1,126 points up (or 4.4%; its largest one-day gain since 2009). Oil futures saw their largest daily gain of 2020, while yields on 10-year and 30-year U.S. Treasury securities fell to 1.03% and 1.62% respectively. On 3 March, the finance ministers and
central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a centra ...
executives of the
G7 countries The Group of Seven (G7) is an intergovernmental political forum consisting of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States; additionally, the European Union (EU) is a "non-enumerated member". It is o ...
released a joint statement to "reaffirm our commitment to use all appropriate policy tools" to address the socioeconomic impact of the outbreak including " fiscal measures where appropriate" with the central banks continuing to "fulfill their mandates, thus supporting price stability and economic growth." On the same day, the Reserve Bank of Australia and the Central Bank of Malaysia announced overnight rate cuts of 25 basis points (which brought the Australian rate to its lowest level in history), Bank Indonesia announced it would cut its reserve requirement from 8 to 4 percent starting on 16 March, while the People's Bank of China declined to conduct open market operations. South Korean Finance Minister
Hong Nam-ki Hong Nam-ki (; born 29 July 1960) is a former Minister of Economy and Finance and an Deputy Prime Minister of South Korea served under President Moon Jae-in from 2018 to 2022. He is the longest serving Minister of Economy and Finance and Depu ...
announced a 11.7 trillion ($9.8 billion) fiscal stimulus program. Also on 3 March, due to the Bank of Mexico declining to cut its overnight rate further, Mexican Finance Minister Arturo Herrera Gutiérrez announced a fiscal stimulus program to accelerate government spending. The Federal Open Market Committee lowered the federal funds rate target by 50 basis points with Federal Reserve Chair Powell stating that the central bank "saw a risk to the outlook for the economy and chose to act" and that "the magnitude and persistence of the overall effect f the outbreakon the U.S. economy remain highly uncertain". At the close of trading on 3 March, European and Asia-Pacific stock markets had mostly risen, but the S&P 500, the NASDAQ Composite, and the Dow Jones Industrial Average all fell (with the Dow reversing more than two-thirds of the previous day's gain). Oil futures rose and the yield on 10-year and 30-year U.S. Treasury securities fell to record lows of 0.91% and 1.60% respectively (with the fall below 1% on the 10-year securities occurring for the first time in history). On 4 March, Asia-Pacific and European stock markets continued mostly rising (with the KOSPI alone rising by 2%), while the S&P 500 rose by 4.2%, the NASDAQ Composite rose by 3.8%, and the Dow Jones Industrial Average reversed the previous day's loss by rising by 1,173 points (or 4.5%). However, oil futures fell and the yield on 10-year and 30-year U.S. Treasury securities finished at 0.99% and 1.64% respectively. The
Bank of Canada The Bank of Canada (BoC; french: Banque du Canada) is a Crown corporation and Canada's central bank. Chartered in 1934 under the ''Bank of Canada Act'', it is responsible for formulating Canada's monetary policy,OECD. OECD Economic Surveys: C ...
and the
Saudi Arabian Monetary Authority The Saudi Central Bank ( ar, البنك المركزي السعودي), previously known as the Saudi Arabian Monetary Authority (SAMA; ar, link=no, مؤسسة النقد العربي السعودي), established in 1952, is the central bank of ...
announced 50 basis point cuts to their overnight and repo rates respectively,
International Monetary Fund The International Monetary Fund (IMF) is a major financial agency of the United Nations, and an international financial institution, headquartered in Washington, D.C., consisting of 190 countries. Its stated mission is "working to foster glo ...
managing director
Kristalina Georgieva Kristalina Ivanova Georgieva-Kinova ( bg, Кристалина Иванова Георгиева-Кинова; ; born 13 August 1953) is a Bulgarian economist serving as managing director of the International Monetary Fund since 2019. She was ...
announced a $50 billion emergency credit-line program to assist low-income and emerging market countries with policy responses to the epidemic, and the Central Bank of Brazil announced that it would auction up to $1 billion in
foreign exchange swap In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward) and may use foreign exchange derivatives ...
s. On 5 March, Asia-Pacific stock markets continued rising while European stock markets closed down. The S&P 500, the NASDAQ Composite, and Dow Jones Industrial Average all fell by more than 3%. Oil futures rose following reports of OPEC agreeing to production cuts with Russia, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.91% and 1.54% respectively. The Central Bank of Argentina cut its bank rate by an additional 200 basis points, and after declining to cut its overnight rate on 27 February, the Bank of Korea renewed a
currency swap In finance, a currency swap (more typically termed a cross-currency swap, XCS) is an interest rate derivative (IRD). In particular it is a linear IRD, and one of the most liquid benchmark products spanning multiple currencies simultaneously. ...
agreement with Bank Indonesia. On 6 March, stock markets worldwide closed down (although the Dow Jones Industrial Average, NASDAQ Composite, and S&P 500 closed up on the week). Oil prices fell by 9% (the largest one-day price drop in 11 years), while the yields on 10-year and 30-year U.S. Treasury securities fell to new record lows under 0.71% and 1.22% respectively. U.S. President
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...
signed into law an emergency appropriations and pandemic countermeasures bill including $8.3 billion in government spending.


Russia–Saudi Arabia oil price war

The reduction in the demand for travel and the lack of factory activity due to the COVID-19 pandemic significantly impacted demand for oil, causing its price to fall. In mid-February, the
International Energy Agency The International Energy Agency (IEA) is a Paris-based autonomous intergovernmental organisation, established in 1974, that provides policy recommendations, analysis and data on the entire global energy sector, with a recent focus on curbing car ...
forecast that oil demand growth in 2020 would be the smallest since 2011. Chinese demand slump resulted in a meeting of the
Organization of the Petroleum Exporting Countries The Organization of the Petroleum Exporting Countries (OPEC, ) is a cartel of countries. Founded on 14 September 1960 in Baghdad by the first five members ( Iran, Iraq, Kuwait, Saudi Arabia, and Venezuela), it has, since 1965, been head ...
(OPEC) to discuss a potential cut in production to balance the loss in demand. The cartel initially made a tentative agreement to cut oil production by 1.5 million barrels per day following a meeting in Vienna on 5 March 2020, which would bring production levels to the lowest since the
Iraq War {{Infobox military conflict , conflict = Iraq War {{Nobold, {{lang, ar, حرب العراق (Arabic) {{Nobold, {{lang, ku, شەڕی عێراق (Kurdish languages, Kurdish) , partof = the Iraq conflict (2003–present), I ...
. After OPEC and Russia failed to agree on oil production cuts on 6 March and Saudi Arabia and Russia both announced increases in oil production on 7 March, oil prices fell by 25 percent. On 8 March,
Saudi Arabia Saudi Arabia, officially the Kingdom of Saudi Arabia (KSA), is a country in Western Asia. It covers the bulk of the Arabian Peninsula, and has a land area of about , making it the fifth-largest country in Asia, the second-largest in the Ara ...
unexpectedly announced that it would increase production of crude oil and sell it at a discount (of $6–8 a barrel) to customers in Asia, the US, and Europe, following the breakdown of negotiations as Russia resisted calls to cut production. The biggest discounts targeted Russian oil customers in northwestern Europe. Prior to the announcement, the price of oil had gone down by more than 30% since the start of the year, and upon Saudi Arabia's announcement it dropped a further 30 percent, though later recovered somewhat. Brent Crude, used to price two-thirds of the world's crude oil supplies, experienced the largest drop since the 1991
Gulf War The Gulf War was a 1990–1991 armed campaign waged by a 35-country military coalition in response to the Iraqi invasion of Kuwait. Spearheaded by the United States, the coalition's efforts against Iraq were carried out in two key phases: ...
on the night of 8 March. Also, the price of West Texas Intermediate fell to its lowest level since February 2016. Former George W. Bush administration energy policy advisor Bob McNally noted, "This is the first time since 1930 and '31 that a massive negative demand shock has coincided with a supply shock;" in that case it was the Smoot–Hawley Tariff Act precipitating a collapse in international trade during the
Great Depression The Great Depression (19291939) was an economic shock that impacted most countries across the world. It was a period of economic depression that became evident after a major fall in stock prices in the United States. The economic contagio ...
, coinciding with discovery of the East Texas Oil Field during the Texas oil boom. Fears of the Russian–Saudi Arabian oil price war caused a plunge in U.S. stocks, and have had a particular impact on American producers of
shale oil Shale oil is an unconventional oil produced from oil shale rock fragments by pyrolysis, hydrogenation, or thermal dissolution. These processes convert the organic matter within the rock ( kerogen) into synthetic oil and gas. The resulting ...
.


9–13 March


Black Monday I (9 March)


Crash

Prior to opening, the
Dow Jones Industrial Average The Dow Jones Industrial Average (DJIA), Dow Jones, or simply the Dow (), is a stock market index of 30 prominent companies listed on stock exchanges in the United States. The DJIA is one of the oldest and most commonly followed equity inde ...
futures market experienced a 1,300-point drop based on the coronavirus and fall in the oil price described above, triggering a trading curb, or circuit breaker, that caused the futures market to suspend trading for 15 minutes. Over the previous weekend, on 8 March, the TA-35 and TA-125 Indices of the Tel Aviv Stock Exchange fell by 4.5% and 4.7% respectively, entering bear markets from their 19 February peaks. The United States' Dow Jones Industrial Average lost more than 2000 points, described by '' The News International'' as "the biggest ever fall in intraday trading." The Dow Jones Industrial Average hit a number of trading "circuit breakers" to curb panicked selling. Oil firms
Chevron Chevron (often relating to V-shaped patterns) may refer to: Science and technology * Chevron (aerospace), sawtooth patterns on some jet engines * Chevron (anatomy), a bone * '' Eulithis testata'', a moth * Chevron (geology), a fold in rock la ...
and ExxonMobil fell about 15%. The NASDAQ Composite, also in the United States, lost over 620 points. The
S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of ...
fell by 7.6%. Oil prices fell 22%, and the yields on 10-year and 30-year U.S. Treasury securities fell below 0.40% and 1.02% respectively. Canada's S&P/TSX Composite Index finished the day off by more than 10%. Brazil's IBOVESPA gave up 12%, erasing over 15 months of gains for the index. Australia's
ASX 200 The S&P/ASX 200 index is a market-capitalization weighted and float-adjusted stock market index of stocks listed on the Australian Securities Exchange. The index is maintained by Standard & Poor's and is considered the benchmark for Australi ...
lost 7.3% – its biggest daily drop since 2008, though it rebounded later in the day. London's
FTSE 100 The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest marke ...
lost 7.7%, suffering its worst drop since the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
. BP and Shell Oil experienced intraday price drops of nearly 20% The FTSE MIB, CAC 40, and DAX tanked as well, with Italy affected the most as the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
in the country continues. They fell 11.2%, 8.4%, and 7.9% respectively. The STOXX Europe 600 fell to more than 20% below its peak earlier in the year. In a number of Asian markets—Japan, Singapore, the Philippines, and Indonesia—shares declined over 20% from their most recent peaks, entering bear market territory. In Japan, the
Nikkei 225 The Nikkei 225, or , more commonly called the ''Nikkei'' or the ''Nikkei index'' (), is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the '' Nihon Keizai Shimbun'' (''The Nikkei'') newspaper since 19 ...
plummeted 5.1%. In Singapore, the
Straits Times Index The Straits Times Index (abbreviation: STI) is a capitalisation-weighted measurement stock market index that is regarded as the benchmark index for the stock market in Singapore. It tracks the performance of the top 30 companies that are listed ...
fell 6.03%. In China, the CSI 300 Index lost 3%. In Hong Kong, the Hang Seng index sank 4.2%. In Pakistan, the PSX saw the largest ever intra-day plunge in the country's history, losing 2,302 points or 6.0%. The market closed with the KSE 100 index down 3.1%. 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. ''
The Washington Post ''The Washington Post'' (also known as the ''Post'' and, informally, ''WaPo'') is an American daily newspaper published in Washington, D.C. It is the most widely circulated newspaper within the Washington metropolitan area and has a large n ...
'' posited that coronavirus-related turmoil could spark a collapse of the
corporate debt bubble The corporate debt bubble is the large increase in corporate bonds, excluding that of financial institutions, following the financial crisis of 2007–08. Global corporate debt rose from 84% of gross world product in 2009 to 92% in 2019, or about $ ...
, sparking and worsening a
recession In economics, a recession is a business cycle contraction when there is a general decline in economic activity. Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various ...
. The Central Bank of Russia announced that it would suspend foreign exchange market purchases in domestic markets for 30 days, while the Central Bank of Brazil auctioned an additional $3.465 billion the foreign exchange market in two separate transactions and the Bank of Mexico increased its foreign exchange auctions program from $20 billion to $30 billion. After announcing a $120 billion fiscal stimulus programs on 2 December, Japanese Prime Minister Shinzo Abe announced additional government spending, while Indonesian Finance Minister Sri Mulyani announced additional stimulus as well.


Etymology

As the hashtag #BlackMonday trended on Twitter, news organizations such as the
Associated Press The Associated Press (AP) is an American non-profit news agency headquartered in New York City. Founded in 1846, it operates as a cooperative, unincorporated association. It produces news reports that are distributed to its members, U.S. new ...
, ''
The Economist ''The Economist'' is a British weekly newspaper printed in demitab format and published digitally. It focuses on current affairs, international business, politics, technology, and culture. Based in London, the newspaper is owned by The Eco ...
'', and '' Yahoo Finance UK'' adopted the term on the day it occurred. While ''
The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers '' The Observer'' and '' The Guardian Weekly'', ''The Guardian'' is part of the ...
'' initially referred to it as "Crash Monday", they also later referred to it as "The Black Monday of 2020" to distinguish it from the 1987 crash of the same name. The Associated Press also quoted an analyst of the Australian finance company OFX as saying, "A blend of shocks have sent the markets into a frenzy on what may only be described as 'Black Monday' ... A combination of a Russia vs. Saudi Arabia oil price war, a crash in equities, and escalations in coronavirus woes have created a killer cocktail to worsen last week's hangover."


10–11 March

On the following day of trading, US stocks recouped some of the losses which happened on Monday, rising by more than 4%. This was attributed to a potential fiscal stimulus, such as a potential 0% payroll tax, being proposed by US President
Donald Trump Donald John Trump (born June 14, 1946) is an American politician, media personality, and businessman who served as the 45th president of the United States from 2017 to 2021. Trump graduated from the Wharton School of the University of P ...
. On Wednesday, however, stocks fell once more, and resulted in the DJIA entering a bear market (i.e. 20% drop from the most recent peak) for the first time in 11 years, ending the longest bull market in American stock market history. On 10 March, the Dow Jones Industrial Average, the NASDAQ Composite, and the S&P 500 all closed 4.9% up, while Asia-Pacific stock markets closed up and European stock markets closed down. Oil prices rose by 10%, while yields on 10-year and 30-year U.S. Treasury securities rose to 0.70% and 1.16% respectively. The Central Bank of Russia announced a repo auction of 500 billion (or $7 billion) and increased its
foreign exchange swap In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward) and may use foreign exchange derivatives ...
operation limit to up to $5 billion. while Bank Indonesia conducted open market purchases of government bonds and Indonesian Finance Minister Sri Mulyani announced tax-related stimulus. Australian Prime Minister Scott Morrison announced A$2.4 billion in government spending for pandemic countermeasures. On 11 March, Asia-Pacific and European stock markets closed down (with the S&P/ASX 200 on the
Australian Securities Exchange Australian Securities Exchange Ltd or ASX, is an Australian public company that operates Australia's primary securities exchange, the Australian Securities Exchange (sometimes referred to outside of Australia as, or confused within Australia as ...
falling to more than 20% below its 52-week high), while the NASDAQ Composite and the S&P 500 both fell by 5% and the Dow Jones Industrial Average by 6% (with the Dow also falling to more than 20% below its most recent record high set on 19 February). Oil prices fell by 4%, while the yield on 10-year and 30-year U.S. Treasury securities rose to 0.82% and 1.33% respectively. The
Índice Bovespa The Bovespa Index ( pt, Índice Bovespa), best known as Ibovespa is the benchmark index of about 92 stocks traded on the B3 (Brasil Bolsa Balcão), accounting for the majority of trading and market capitalization in the Brazilian stock market. I ...
of the Brazil Stock Exchange fell by 8.5% to 27% on the year, while the S&P/TSX Composite Index on the Toronto Stock Exchange also fell to more than 20 percent below its most recent peak on 20 February. The Bank of England announced that it would cut its bank rate by 25 basis points, while Chancellor of the Exchequer
Rishi Sunak Rishi Sunak (; born 12 May 1980) is a British politician who has served as Prime Minister of the United Kingdom and Leader of the Conservative Party since October 2022. He previously held two cabinet positions under Boris Johnson, lastly as ...
announced £30 billion in government spending with £12 billion specifically directed at pandemic countermeasures. The Federal Reserve announced that it would increase the top level of its overnight repurchase operations to $175 billion. The Bank of Japan announced that it was increasing its annual target of purchases of exchange-traded funds above the current ¥6 trillion (or $57 billion). Indonesian Finance Minister Sri Mulyani announced tax relief for the Indonesian manufacturing sector during the COVID-19 pandemic. Italian Prime Minister
Giuseppe Conte Giuseppe Conte (; born 8 August 1964) is an Italian jurist, academic, and politician who served as prime minister of Italy from June 2018 to February 2021. He has been the president of the Five Star Movement (M5S) since August 2021. Cont ...
announced a €25 billion (or $28 billion) fiscal stimulus.


United States presidential address

On 11 March, US president Donald Trump gave a public address. In the speech, the president announced a temporary 30-day
travel ban A travel ban is one of a variety of mobility restrictions imposed by governments. Bans can be universal or selective. The restrictions can be geographic, imposed by either the originating or destination jurisdiction. They can also be based on indiv ...
on all European goods and passengers from Europe in response to the COVID-19 pandemic. Trump's initial statements were later corrected: the ban affected people who were not US citizens and who in the past two weeks had visited the 26-member Schengen Area, but did not include trade goods and cargo and excluded the United Kingdom and
Republic of Ireland Ireland ( ga, Éire ), also known as the Republic of Ireland (), is a country in north-western Europe consisting of 26 of the 32 counties of the island of Ireland. The capital and largest city is Dublin, on the eastern side of the island. ...
. These countries were added to the ban 3 days later. Trump did not consult with the
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...
before imposing the travel ban. Carmen Reinicke of ''
Business Insider ''Insider'', previously named ''Business Insider'' (''BI''), is an American financial and business news website founded in 2007. Since 2015, a majority stake in ''Business Insider''s parent company Insider Inc. has been owned by the German publ ...
'' wrote that Trump's address to the nation "failed to calm investors' concerns about the economic fallout from the coronavirus outbreak". According to Ben Levisohn, writer for ''Barron's'', "Dow futures were up around 300 points before the president's address began. And then the president started talking—and futures started falling."


Black Thursday (12 March)

Black ThursdayFor an explanation regarding the title "Black Thursday", see: * * * * * was a global stock market crash on 12 March 2020, as part of the greater 2020 stock market crash. US stock markets suffered from the greatest single-day percentage fall since the
1987 stock market crash Black Monday is the name commonly given to the global, sudden, severe, and largely unexpected stock market crash on Monday, October 19, 1987. In Australia and New Zealand, the day is also referred to as ''Black Tuesday'' because of the time z ...
. Following Black Monday three days earlier, Black Thursday was attributed to the
COVID-19 pandemic The COVID-19 pandemic, also known as the coronavirus pandemic, is an ongoing global pandemic of coronavirus disease 2019 (COVID-19) caused by severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The novel virus was first identi ...
and a lack of investor confidence in US President Donald Trump after he declared a 30-day
travel ban A travel ban is one of a variety of mobility restrictions imposed by governments. Bans can be universal or selective. The restrictions can be geographic, imposed by either the originating or destination jurisdiction. They can also be based on indiv ...
against the Schengen Area. Additionally, the
European Central Bank The European Central Bank (ECB) is the prime component of the monetary Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's most important centra ...
, under the lead of Christine Lagarde, decided to not cut interest rates despite market expectations, leading to a drop in
S&P 500 The Standard and Poor's 500, or simply the S&P 500, is a stock market index tracking the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices. As of ...
futures of more than 200 points in less than an hour. Bank Indonesia announced open market purchases of Rp4 trillion (or $276.53 million) in government bonds, while Bank Indonesia Governor
Perry Warjiyo Perry Warjiyo (born 25 February 1959) is the current Governor of Bank Indonesia, Indonesia's central Bank. His nomination for the post of Governor was approved by the Indonesian parliament on 28 March 2018. He was sworn into office on 24 May 20 ...
stated that Bank Indonesia's open market purchases of government bonds had climbed to Rp130 trillion on the year and Rp110 trillion since the end of January. Despite declining to cut its deposit rate, the European Central Bank increased its asset purchases by €120 billion (or $135 billion), while the Federal Reserve announced $1.5 trillion in open market purchases. Australian Prime Minister Scott Morrison announced a A$17.6 billion fiscal stimulus package. The
Reserve Bank of India The Reserve Bank of India, chiefly known as RBI, is India's central bank and regulatory body responsible for regulation of the Indian banking system. It is under the ownership of Ministry of Finance, Government of India. It is responsible f ...
announced that it would conduct a six-month $2 billion
currency swap In finance, a currency swap (more typically termed a cross-currency swap, XCS) is an interest rate derivative (IRD). In particular it is a linear IRD, and one of the most liquid benchmark products spanning multiple currencies simultaneously. ...
for
U.S. dollars The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...
, while the Reserve Bank of Australia announced A$8.8 billion in repurchases of government bonds. The Central Bank of Brazil auctioned $1.78 billion foreign exchange spots. Asia-Pacific stock markets closed down with the
Nikkei 225 The Nikkei 225, or , more commonly called the ''Nikkei'' or the ''Nikkei index'' (), is a stock market index for the Tokyo Stock Exchange (TSE). It has been calculated daily by the '' Nihon Keizai Shimbun'' (''The Nikkei'') newspaper since 19 ...
of the Tokyo Stock Exchange, the Hang Seng Index of the Hong Kong Stock Exchange, and the IDX Composite of the
Indonesia Stock Exchange Indonesia Stock Exchange (IDX) ( id, Bursa Efek Indonesia, formerly nl, Vereniging voor de Effectenhandel) is a stock exchange based in Jakarta, Indonesia. It was previously known as the Jakarta Stock Exchange (JSX) before its name changed in ...
falling more than 20% below their 52-week highs. European stock markets closed down 11% with the UK
FTSE 100 The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest marke ...
, German DAX, French CAC 40, Italian FTSE MIB, Finnish
OMX Helsinki 25 OMX Helsinki 25 (, formerly HEX25) is a stock market index for the Helsinki Stock Exchange. It is a market value weighted index that consists of the 25 most-traded stock classes. The maximum weight for a single stock is limited to 10%. This is mai ...
, Swedish OMX Stockholm 30, OMX Nordic 40, and the Latvian OMX Riga indices all closing more than 20% below their most recent peaks. In the US, the Dow Jones Industrial Average closed down an additional 10%, the NASDAQ Composite closed down 9.4%, and the S&P 500 closed down 9.5%. This caused the NASDAQ and S&P 500 to fall to more than 20% below their all time highs, and so the declines activated a trading curb at the
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its liste ...
for the second time that week. Oil prices dropped by 8%, while the yields on 10-year and 30-year U.S. Treasury securities increased to 0.86% and 1.45% (and their yield curve finished normal).


Crash

The US's Dow Jones Industrial Average and S&P 500 suffered from the greatest single-day percentage fall since the
1987 stock market crash Black Monday is the name commonly given to the global, sudden, severe, and largely unexpected stock market crash on Monday, October 19, 1987. In Australia and New Zealand, the day is also referred to as ''Black Tuesday'' because of the time z ...
, as did the UK's
FTSE 100 The Financial Times Stock Exchange 100 Index, also called the FTSE 100 Index, FTSE 100, FTSE, or, informally, the "Footsie" , is a share index of the 100 companies listed on the London Stock Exchange with (in principle) the highest marke ...
, which fell 10.87%. The Canadian S&P/TSX Composite Index dropped 12%, its largest one-day drop since 1940. The FTSE MIB Italian index closed with a −16.92% loss, the worst in its history. Germany's DAX fell 12.24% and France's CAC 12.28%. In Brazil, the Ibovespa plummeted 14.78%, after trading in the B3 was halted twice within the
intraday Day trading is a form of speculation in securities in which a trader buys and sells a financial instrument within the same trading day, so that all positions are closed before the market closes for the trading day to avoid unmanageable risks ...
; it also moved below the 70,000 mark before closing above it. The NIFTY 50 on the
National Stock Exchange of India National Stock Exchange of India Limited (NSE) is the leading stock exchange under the ownership of various group of domestic and global financial institutions, public and privately owned entities and individuals. It is located in Mumbai, Ma ...
fell 7.89% to more than 20% below its most recent peak, while the BSE SENSEX on the Bombay Stock Exchange fell 2,919 (or 8.18%) to 32,778. The benchmark stock market index on the Johannesburg Stock Exchange fell by 9.3%. The
MERVAL The S&P MERVAL Index (''MERcado de VALores'', ) is the most important index of the Buenos Aires Stock Exchange. It is a price-weighted index, calculated as the market value of a portfolio of stocks selected based on their market share, number of ...
on the Buenos Aires Stock Exchange fell 9.5% to 19.5% on the week. 12 March was the second time, following 9 March drop, that the 7%-drop circuit breaker was triggered since being implemented in 2013. In Colombia, the
peso The peso is the monetary unit of several countries in the Americas, and the Philippines. Originating in the Spanish Empire, the word translates to "weight". In most countries the peso uses the same sign, "$", as many currencies named " doll ...
set an all-time low against the U.S. dollar, when it traded above 4000 pesos for the first time on record. The Mexican peso also set an all-time record low against the U.S. dollar, trading at 22.99 pesos.


United States

Soon after trading began, a Level-1 trading curb was triggered on major US stock markets due to increased selling, leading to a 15-minute halt on trading. Level-1 circuit breaker is triggered with a fall of 7% on the S&P 500. The trading halt occurred after the markets reached a drop of 7.2 percent within 15 minutes. The crash temporarily recovered after the Federal Reserve Bank of New York offered at least $1.5 trillion worth of short-term loans to banks for 12–13 March, but the market quickly resumed its decline soon after. The Dow fell 2,353 points, losing all of its gains from its lowest point in 2018. The drop surpassed Black Monday, which occurred just a few days before, to be the greatest single-day point drop ever. Together with the drops of 1,191 and 1,465 points on 27 February and 11 March, the four largest Dow daily losses up to Black Thursday were all linked to the COVID-19 pandemic. President Trump reacted to the crash by defending his travel ban and predicting that the stock market would eventually recover with central bank intervention.


13 March

On 13 March, European stock markets closed mostly up while Asia-Pacific stock markets mostly closed down (except for the S&P/ASX 200 which rose by 4.4%), while the Dow Jones Industrial Average, NASDAQ Composite, and the S&P 500 all rose by more than 9% (in their largest rally since 2008). The RTS Index on the Moscow Exchange finished 27% down on the week, the Tadawul All-Share Index on the
Saudi Stock Exchange Saudi Stock Exchange () or Tadāwul () is a stock exchange in Saudi Arabia. Tadāwul was formed in 2007 as a joint stock company and the sole entity authorized to act as a securities exchange in Saudi Arabia, but trading began in 1954 as an info ...
finished 17% percent down, the benchmark index on the Borsa Istanbul finished 15% down, and the
Indice de Precios y Cotizaciones The Índice de Precios y Cotizaciones (IPC) is the weighted measurement index of 35 stocks traded on the Bolsa Mexicana de Valores The Mexican Stock Exchange ( es, Bolsa Mexicana de Valores), commonly known as Mexican Bolsa, Mexbol, or BMV, is o ...
on the Mexican Stock Exchange finished 9% down. Though finishing up on the day, oil prices posted their largest single-week decline since 2008, while yields on 10-year and 30-year U.S. Treasury securities rose to over 1% and 1.6% respectively (and their yield curve remained normal). The
Índice Bovespa The Bovespa Index ( pt, Índice Bovespa), best known as Ibovespa is the benchmark index of about 92 stocks traded on the B3 (Brasil Bolsa Balcão), accounting for the majority of trading and market capitalization in the Brazilian stock market. I ...
of the Brazil Stock Exchange closed 13% up. U.S. President Donald Trump declared the COVID-19 pandemic to be a national public health emergency thus releasing $50 billion in government spending directed to pandemic countermeasures. Speaker of the U.S. House of Representatives Nancy Pelosi stated that the U.S. House of Representatives would pass a subsequent appropriations and pandemic countermeasures bill including a sick leave expansion, which President Trump reversed his initial opposition to and endorsed. Canadian Prime Minister
Justin Trudeau Justin Pierre James Trudeau ( , ; born December 25, 1971) is a Canadian politician who is the 23rd and current prime minister of Canada. He has served as the prime minister of Canada since 2015 and as the leader of the Liberal Party since ...
announced that the
Government of Canada The government of Canada (french: gouvernement du Canada) is the body responsible for the federal administration of Canada. A constitutional monarchy, the Crown is the corporation sole, assuming distinct roles: the executive, as the ''Crown-i ...
was preparing a fiscal stimulus program, with Canadian Finance Minister
Bill Morneau William Francis Morneau Jr. (born October 7, 1962) is a Canadian businessman and former Liberal Party politician who served as minister of finance and member of Parliament (MP) for Toronto Centre from 2015 to 2020. Morneau was executive chai ...
stating that it would include a C$10 billion business credit-line. The Bank of Canada announced an additional 50 basis point cut to its overnight rate. The People's Bank of China announced that it would reduce its reserve requirement by 50 to 100 basis points from the current 12.5%, releasing $79 billion into the money supply. The Bank of Japan announced ¥200 billion (or $1.9 billion) of open market purchases of government bonds. The Bank of Canada announced C$7.5 billion of open market purchases. The Brazilian Finance Ministry announced that it was cancelling a series of bond auctions for the upcoming week. The Central Bank of Russia announced that it would purchase at auction ₽500 billion (or $6.8 billion) in repurchase agreements. The Central Bank of the Republic of Turkey conducted 29 billion (or $4.6 billion) in open market repurchases of government bonds. Bank Indonesia conducted Rp6 trillion (or $405 billion) of open market purchases of government bonds, while Indonesian Finance Minister Sri Mulyani announced Rp120 trillion ($8.1 billion) in additional fiscal stimulus.


16–20 March


Black Monday II (16 March)

Over the preceding weekend, the Saudi Arabian Monetary Authority announced a $13 billion credit-line package to small and medium-sized companies, while South African President Cyril Ramaphosa announced a fiscal stimulus package. The Federal Reserve announced that it would cut the federal funds rate target to 0%–0.25%, lower reserve requirements to zero, and begin a $700 billion quantitative easing program. Dow futures tumbled more than 1,000 points and Standard & Poor's 500 futures dropped 5%, triggering a circuit breaker. On Monday 16 March, Asia-Pacific and European stock markets closed down, with the S&P/ASX 200 setting a one-day record fall of 9.7%, collapsing 30% from the peak that was reached on 20 February, and the OMX Copenhagen 25, the OMX Tallinn, and OMX Vilnius on the Nasdaq Nordic exchanges all fell below 20 percent from their most recent peaks on 19 February in
Copenhagen Copenhagen ( or .; da, København ) is the capital and most populous city of Denmark, with a proper population of around 815.000 in the last quarter of 2022; and some 1.370,000 in the urban area; and the wider Copenhagen metropolitan a ...
and on 21 February in Tallinn and Vilnius. The Dow Jones Industrial Average, the NASDAQ Composite, and the S&P 500 all fell by 12–13%, with the Dow eclipsing the one-day drop record set on 12 March and the trading curb being activated at the beginning of trading for the third time (after 9 and 12 March). Oil prices fell by 10%, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.76% and 1.38% respectively (while their yield curve remained normal for the third straight trading session). The CBOE Volatility Index closed at 82.69 on 16 March, the highest ever closing for the index (though there were higher intraday peaks in 2008). Around noon on 16 March, the Federal Reserve Bank of New York announced that it would conduct a $500 billion repurchase through the afternoon of that day. Indonesian Finance Minister Sri Mulyani announced an additional Rp22 trillion in tax-related fiscal stimulus. The Central Bank of the Republic of Turkey lowered its reserve requirement from 8% to 6%. The Bank of Japan announced that it would not cut its bank rate lower from −0.1% but that it would conduct more open market purchases of exchange-traded funds. After cutting its bank rate by 25 basis points on 7 February, the Central Bank of Russia announced that it would keep its bank rate at 6%, while the Bank of Korea announced that it would cut its overnight rate by 50 basis points to 0.75%. The
Central Bank of Chile The Central Bank of Chile ( es, Banco Central de Chile) is the central bank of Chile. It was established in 1925 and is incorporated into the current Chilean Constitution as an autonomous institution of constitutional rank. Its monetary policy is ...
cut its benchmark rate,.


17–20 March

On 17 March, Asia-Pacific stock markets closed with mixed finishes, while European stock markets finished more than 2% up, whereas the NASDAQ Composite and the S&P 500 finished more than 6% up and the Dow Jones Industrial Average finished more than 5% up. Oil prices fell by 6%, while the yields on 10-year and 30-year U.S. Treasury securities rose to 1.04% and 1.62% respectively. The Federal Reserve announced that it would reestablish its
Commercial Paper Funding Facility Commercial Paper Funding Facility (CPFF) was a system created by the United States Federal Reserve Board during the financial crisis of 2007–08 to improve liquidity in the short-term funding markets. It was reauthorized in March 2020 in reaction ...
(CPFF) with up to $1 trillion for short-term corporate bonds, while Chancellor of the Exchequer Rishi Sunak announced a £330 billion government-backed business loan guarantee program. The Central Bank of the Republic of Turkey announced that it would cut its repo rate by 100 basis points from 10.75% to 9.75%, while providing the
Turkish lira The lira ( tr, Türk lirası; sign: ₺; ISO 4217 code: TRY; abbreviation: TL) is the official currency of Turkey and Northern Cyprus. One lira is divided into one hundred '' kuruş''. History Ottoman lira (1844–1923) The lira, along wi ...
repo auctions at 150 basis points lower than its benchmark repo rate. The Bank of Israel announced that it would cut its bank rate by 15 basis points to 0.10%. The Bank of Japan conducted ¥120 billion in open market purchases of exchange-traded funds. Spanish Prime Minister
Pedro Sánchez Pedro Sánchez Pérez-Castejón (; born 29 February 1972) is a Spanish politician who has been Prime Minister of Spain since June 2018. He has also been Secretary-General of the Spanish Socialist Workers' Party (PSOE) since June 2017, having p ...
and French President Emmanuel Macron announced €200 billion and €45 billion ($220 billion and $50 billion) fiscal stimulus programs respectively, while Canadian Prime Minister Justin Trudeau released the Canadian federal government's C$82 billion ($56.7 billion) fiscal stimulus package he announced the previous week. New Zealand Finance Minister Grant Robertson also announced a NZ$12.1 billion fiscal stimulus program. The National Bank of Poland announced that it would cut its reference rate by 50 basis points to 1%, its lombard rate by 100 basis points to 1.5%, its bank rate by 70 basis points to 1.05%, and cut its reserve requirement from 3.5% to 0.5%. On 18 March, Asia-Pacific and European stock markets closed down, while the NASDAQ Composite and the S&P 500 both fell by 5%, and the Dow Jones Industrial Average by more than 6% and below 20,000 points for the first time since February 2017 (with the trading curb activated for the fourth time within the course of a week). Oil prices fell by 24% to an 18-year low, while the yields on 10-year and 30-year U.S. Treasury securities rose to 1.23% and 1.68% respectively (while their yield curve remained normal). U.S. Senate Majority Leader Mitch McConnell stated that he expected the $100 billion appropriations and pandemic countermeasures bill passed by the U.S. House of Representatives the previous Friday to pass the U.S. Senate that day, which it did by a vote of 90 to 8 and President Donald Trump signed the bill into law. The European Central Bank announced that it would purchase up to €750 billion ($820 billion) of government and corporate bonds and commercial paper. The Central Bank of Brazil cut its overnight rate by 50 basis points to a record-low 3.75% and sold $830 million in foreign exchange spots, while the Reserve Bank of Australia cut its official cash rate to 0.25%. The Reserve Bank of India announced that it would conduct $1.35 billion in open market purchases of government bonds, the Bank of Korea announced that it would conduct a ₩1 trillion ($793.5 million) repo auction the following day, and the National Bank of Poland announced that it would conduct open market purchases of government bonds to support fiscal stimulus implemented by the Polish government. The
New York Stock Exchange The New York Stock Exchange (NYSE, nicknamed "The Big Board") is an American stock exchange in the Financial District of Lower Manhattan in New York City. It is by far the world's largest stock exchange by market capitalization of its liste ...
announced that it would temporarily close its
trading floor Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell order ...
and move to all-electronic trading beginning on 23 March when two traders tested positive for
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quick ...
at screenings set up by the NYSE. On 19 March, Asia-Pacific stock markets closed down while European stock markets closed 3% up, while the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 also all closed up. Oil prices rose by 23%, while the yields on 10-year and 30-year U.S. Treasury securities fell to 1.06% and 1.68% respectively (while their yield curve remained normal). The Federal Reserve announced $450 billion in
foreign exchange swap In finance, a foreign exchange swap, forex swap, or FX swap is a simultaneous purchase and sale of identical amounts of one currency for another with two different value dates (normally spot to forward) and may use foreign exchange derivatives ...
lines to the central banks of Australia, Brazil, South Korea, Mexico,
Singapore Singapore (), officially the Republic of Singapore, is a sovereign island country and city-state in maritime Southeast Asia. It lies about one degree of latitude () north of the equator, off the southern tip of the Malay Peninsula, bor ...
,
Sweden Sweden, formally the Kingdom of Sweden,The United Nations Group of Experts on Geographical Names states that the country's formal name is the Kingdom of SwedenUNGEGN World Geographical Names, Sweden./ref> is a Nordic countries, Nordic c ...
,
Denmark ) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Kingdom of Denmark , establish ...
,
Norway Norway, officially the Kingdom of Norway, is a Nordic countries, Nordic country in Northern Europe, the mainland territory of which comprises the western and northernmost portion of the Scandinavian Peninsula. The remote Arctic island of ...
and New Zealand, with the swap lines for the Central Bank of Brazil, the Monetary Authority of Singapore, and the Bank of Korea amounting to $60 billion each. The Federal Reserve also established an additional lending facility similar to the CPFF for money market mutual funds. The Bank of Japan conducted ¥1.3 trillion ($12 billion) in emergency open market purchases of government bonds. The Bank of England announced that it would cut its overnight rate by 15 basis points to 0.1% and would increase its open market purchases of government bonds by £200 billion to a total of £645 billion, while the Danmarks Nationalbank raised its deposit rate by 15 basis points to −0.60%. The
Central Bank of the Republic of China The Central Bank of the Republic of China (Taiwan) (CBC), known in English from 1924 to 2007 as the Central Bank of China, is the central bank of the Republic of China, once founded in Mainland China and since relocated to Taiwan. Its legal an ...
cut its bank rate by 25 basis points to 1.125%. After cutting its repo rate by 25 basis points on 16 January, the
South African Reserve Bank The South African Reserve Bank (SARB) is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920", as a direct result of the abnormal monetary and financial condi ...
announced that it would cut its repo rate by an additional 100 basis points to 5.25%. Bank Indonesia also cut its repo rate by 25 basis points to 4.50%. Chilean President Sebastián Piñera announced an $11.7 billion fiscal stimulus package. U.S. Senate Majority Leader Mitch McConnell introduced legislation for a third fiscal stimulus package of up to $1 trillion that includes cash payments to households under $75,000 in adjusted gross income (with $1,200 per individual, $2,400 for couples, and $500 per child) and $208 billion for industries severely distressed by the pandemic. On Friday, 20 March 2020, Asia-Pacific and European stock markets closed mostly up, while the Dow Jones Industrial Average, the NASDAQ Composite, and the S&P 500 all closed down 4% (with the Dow eclipsing its one-week decline from 24 to 28 February 2020 to finish at its largest one-week decline since the
financial crisis of 2007–2008 Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of ...
). Oil prices fell by 11%, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.93% and 1.52% respectively (while their yield curve remained normal for at least the sixth trading session of the preceding seven). The Federal Reserve announced that it would expand its asset purchases to include municipal bonds, while the Reserve Bank of Australia announced that it would also purchase A$5 billion ($2.9 billion) in municipal bonds. Bank Indonesia and the Central Bank of Brazil announced $10.1 billion and $3 billion of open market purchases of government bonds respectively, while the Reserve Bank of India announced that it would conduct 300 billion in open market purchases the following week. The Bank of Mexico announced that it would cut its overnight rate by 50 basis points, while the National Bank of Romania announced that it would cut its bank rate by 25 basis points to 2.0%. The European Central Bank opened a €24 billion foreign exchange swap line with Danmarks Nationalbank. U.S. Treasury Secretary Steven Mnuchin announced that the Internal Revenue Service would extend the federal tax filing deadline from 15 April to 15 July, while Maryland Governor Larry Hogan and
New York Governor The governor of New York is the head of government of the U.S. state of New York. The governor is the head of the executive branch of New York's state government and the commander-in-chief of the state's military forces. The governor ...
Andrew Cuomo Andrew Mark Cuomo ( ; ; born December 6, 1957) is an American lawyer and politician who served as the 56th governor of New York from 2011 to 2021. A member of the Democratic Party, he was elected to the same position that his father, Mario Cuo ...
, as chair and vice-chair of the National Governors Association, wrote an open letter to the
Trump Administration Donald Trump's tenure as the List of presidents of the United States, 45th president of the United States began with Inauguration of Donald Trump, his inauguration on January 20, 2017, and ended on January 20, 2021. Trump, a Republican Party ...
and the 116th U.S. Congress to request $150 billion in federal aid to U.S. state governments to address the COVID-19 pandemic. The Swiss federal government and the Saudi Arabian national government both announced $32 billion fiscal stimulus programs, while the
German federal government The Federal Cabinet or Federal Government (german: link=no, Bundeskabinett or ') is the chief executive body of the Federal Republic of Germany. It consists of the Federal Chancellor and cabinet ministers. The fundamentals of the cabinet's org ...
has been reported to be planning a €100 billion fiscal stimulus program. Indonesian Finance Minister Sri Mulyani announced that the Indonesian government would reallocate Rp62.3 trillion ($3.9 billion) from the 2020
fiscal year A fiscal year (or financial year, or sometimes budget year) is used in government accounting, which varies between countries, and for budget purposes. It is also used for financial reporting by businesses and other organizations. Laws in many ...
budget for COVID-19 pandemic countermeasures.


23–27 March

On Monday, 23 March 2020, Asia-Pacific stock markets closed up while European and U.S. stock markets closed mostly down. Oil prices rose, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.82% and 1.34% respectively. The finance ministers and central bank executives of the G20 countries agreed to develop a joint action plan to address the economic effects of the COVID-19 pandemic. The Reserve Bank of New Zealand and the Bank of Japan announced NZ$30 billion and $7.3 billion in open market purchases of government bonds respectively, the Reserve Bank of India and Sveriges Riksbank announced ₹1 trillion and kr10 billion ($956.3 million) in repo operations, while the Bank of Korea and the Federal Reserve announced that they would conduct additional repo operations and asset purchases respectively of undisclosed amounts. The Bank of Japan lent $34.9 billion to its nation's banks in a one-week dollar funding operation, Sveriges Riksbank announced kr400 billion ($38.8 billion) in loans to its nation's banks, the
World Bank The World Bank is an international financial institution that provides loans and grants to the governments of low- and middle-income countries for the purpose of pursuing capital projects. The World Bank is the collective name for the Inte ...
announced $300 million in loans to banks in Indonesia, while the Central Bank of Brazil announced that it would expand its money supply by R$1.2 trillion ($234 billion) in loans to banks and by cutting its reserve requirement from 25% to 17%. The Hungarian National Bank announced Ft74.5 billion ($227 million) in foreign exchange swaps of domestic currency with euros. The Australian parliament passed an A$80 billion fiscal stimulus program, while Japanese Prime Minister Shinzo Abe announced that a fiscal stimulus program his government was considering would amount to at least ¥15 trillion ($137 billion). The Central Bank of Iceland announced that it would initiate a quantitative easing program to purchase government bonds in support of a $1.6 billion fiscal stimulus program announced by the
Icelandic government The politics of Iceland take place in the framework of a parliamentary representative democratic republic, whereby the president is the head of state, while the prime minister of Iceland serves as the head of government in a multi-party system ...
over the preceding weekend. On 24 March, Asia-Pacific and European stock markets closed up, while the Dow Jones Industrial Average closed more than 11% up, the NASDAQ Composite closed more than 8% up, and the S&P 500 closed more than 9% up. Oil prices rose by more than 2%, while the yields on 10-year and 30-year U.S. Treasury securities rose to 0.82% and 1.40% respectively. After agreeing to a joint investment €37 billion financial assistance program to European businesses the preceding week, the finance ministers of the
Eurozone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU pol ...
meeting did not agree to more joint fiscal stimulus. The Bank of Japan lent an additional $89 billion in two-dollar funding operations, while the Indonesian Financial Services Authority raised the capital requirement for the nation's banks to Rp3 trillion ($182.1 million) by 2022. South Korean President Moon Jae-in announced that a planned fiscal stimulus package would be doubled in size to ₩100 trillion ($80 billion). The Hungarian National Bank announced that it would leave its bank and overnight rates at 0.9% and −0.05% respectively but waived its reserve requirements and is expected to announce further quantitative easing measures. Romanian Finance Minister Florin Cîțu announced that the Romanian government would allow banks to defer loan repayments for approximately six months. On 25 March, Asia-Pacific and European stock markets closed up, while the NASDAQ Composite closed down, but the S&P 500 and the Dow Jones Industrial Average also closed up (with the Dow posting its first consecutive gain since the previous month). Oil prices rose, and the yields on 10-year and 30-year U.S. Treasury securities fell to 0.79% and 1.33% respectively. The U.S. Senate unanimously passed the $2.2 trillion fiscal stimulus package introduced by Senate Majority Leader Mitch McConnell the preceding week. The
heads of government The head of government is the highest or the second-highest official in the executive branch of a sovereign state, a federated state, or a self-governing colony, autonomous region, or other government who often presides over a cabinet, a ...
in nine
Eurozone The euro area, commonly called eurozone (EZ), is a currency union of 19 member states of the European Union (EU) that have adopted the euro (€) as their primary currency and sole legal tender, and have thus fully implemented EMU pol ...
countries called for the issuance of corona bonds. The Reserve Bank of New Zealand announced NZ$250 million ($146 million) of open market purchases of governments bonds as part of its quantitative easing program. Mexican Finance Minister Arturo Herrera Gutiérrez announce that the Mexican federal government would allow Mexican banks to defer loan repayments. The South African Reserve Bank announced a quantitative easing program of open market purchases of an unspecified amount of government bonds. The Bank of Korea announced that it would finance half of the South Korean government's stimulus program. The Central Bank of Iceland announced that it would lower its average reserve maintenance requirement from 1% to 0%. The Swiss federal government announced a $20.4 billion business credit-line program and the Swiss National Bank announced the creation of a refinancing facility with an unlimited supply of credit for the Swiss banking system. On 26 March, Asia-Pacific stock markets finished with mixed closings while European stock markets closed higher, and the Dow Jones Industrial Average, the NASDAQ Composite, and the S&P 500 all rose by 6% (and the Dow capping its largest 3-day upswing since 1931). Oil prices fell, while the yields on 10-year and 30-year U.S. Treasury securities rose slightly to 0.80% and 1.37% respectively. At a virtual summit,
European Union The European Union (EU) is a supranational union, supranational political union, political and economic union of Member state of the European Union, member states that are located primarily in Europe, Europe. The union has a total area of ...
heads of state and government did not agree to begin issuing corona bonds. The Reserve Bank of Australia announce that it would conduct A$3 billion of open market purchases of government bonds. The central banks of Denmark, Norway, Singapore, and Sweden announced foreign exchange swaps of U.S. dollars with their nation's banks, while the Sveriges Riksbank also announced that it would purchase kr300 billion ($29.84 billion) of commercial paper. The Indonesian government announced that it would issue bonds whose proceeds would dedicated for financial assistance programs to business severely distressed by the COVID-19 pandemic. The Central Bank of Russia announced that it continue selling foreign currency in domestic markets the following week. The Bank of Korea announced that it would conduct open-ended open market purchases of government bonds at repo auctions every Tuesday for the following three months. The Mexican federal government's credit rating was downgraded by S&P Global Ratings to BBB. The Czech National Bank cut its bank rate by an additional 75 basis points to 1%. Singaporean Finance Minister Heng Swee Keat announced a second fiscal stimulus package of S$48 billion (US$33.7 billion). Indian Finance Minister
Nirmala Sitharaman Nirmala Sitharaman (born 18 August 1959) is an Indian economist and politician serving as the Minister of Finance and Corporate Affairs of India since 2019. She is a member of the Rajya Sabha, upper house of the Indian Parliament, since 2014. ...
announced a $23 billion fiscal stimulus package. The Chinese government announced that it was implementing a $344 billion fiscal stimulus program. On 27 March, Asia-Pacific stock markets finished with mixed closings, European stock markets closed down, and the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 all closed more than 3% down (while finishing up on the week). Oil prices fell by 5% (and closed down for the fifth consecutive week), and yields on 10-year and 30-year U.S. Treasury securities fell to 0.77% and 1.36% respectively. The U.S. House of Representatives passed the $2.2 trillion fiscal stimulus package passed by the U.S. Senate on 25 March with U.S. President Donald Trump signing the bill into law the same day. The European Central Bank announced an additional €750 billion ($820 billion) in open market purchases of government bonds. The Bank of Canada cut its overnight rate by an additional 50 basis points to 0.25%. The Reserve Bank of India announced that it would cut its repo rate by 75 basis points to 4.4%. The Central Bank of Brazil auctioned $610 million in foreign exchange spots, while Central Bank of Brazil President
Roberto Campos Neto Roberto de Oliveira Campos Neto (born 28 June 1969) is a Brazilian economist, former executive of Banco Santander, and current president of Central Bank of Brazil. He is the grandson of Brazilian politician Roberto Campos, who was minister of p ...
formally requested the legal authority to implement a quantitative easing program from the
National Congress of Brazil The National Congress of Brazil ( pt, Congresso Nacional do Brasil) is the legislative body of Brazil's federal government. Unlike the state legislative assemblies and municipal chambers, the Congress is bicameral, composed of the Federal Se ...
. Malaysian Prime Minister Muhyiddin Yassin announced a RM250 billion ($57 billion) fiscal stimulus package. The
South African government The Republic of South Africa is a parliamentary republic with three-tier system of government and an independent judiciary, operating in a parliamentary system. Legislative authority is held by the Parliament of South Africa. Executive auth ...
's credit rating was downgraded by Moody's to Ba1 (its highest non-investment grade). The Central Bank of Russia announced a ₽150 billion ($1.92 billion) credit-line program for small- and medium-sized business. Sveriges Riksbank announced that it would conduct kr20 billion ($2.01 billion) of open market purchases of covered bonds.


Overall size of the falls

"In the 33 days between 19 February and 23 March, the
FTSE All-Share Index The FTSE All-Share Index, originally known as the FTSE Actuaries All Share Index, is a capitalisation-weighted index, comprising around 600 of more than 2,000 companies traded on the London Stock Exchange (LSE). Since 29 December 2017 the constitu ...
fell by 33 per cent ..The MSCI World Index declined by 34 per cent."


Subsequent recovery

Over the preceding weekend, the Central Bank of Taiwan announced a T$200 billion ($6.6 billion) credit-line program to small and medium-sized businesses, while the Bank of Korea announced that it would conduct a $12 billion U.S. dollar-funding operation at auctions to South Korean banks. The South African Reserve Bank announced that it would ease banking accounting and capital regulations to release R300 billion in credit, while the Bank of Israel announced that it would ease its capital requirements to facilitate greater lending by its banking system as well. On Monday, 30 March 2020, Asia-Pacific stock markets closed mostly down while European stock markets closed mostly 1% higher, and the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 all closed more than 3% higher. Oil prices fell by more than 6% to an 18-year low, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.66% and 1.24% respectively (while their yield curve remained normal). On 31 March, Asia-Pacific stock markets finished with mixed closings while European stock markets closed up, and the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 all fell by more than 1% (with the Dow closing to its worst one-quarter decline in history). Oil prices rose by 2% (but closed at their worst one-month and one-quarter declines in history), while the yields on 10-year and 30-year U.S. Treasury securities rose to 0.68% and 1.34% respectively. On 1 April, Asia-Pacific and European stock markets closed mostly down, while the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 all closed 5% down. Oil prices fell, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.61% and 1.23% respectively (while their yield curve finished normal). On 9 April, Saudi Arabia and Russia agreed to oil production cuts. 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 The United States Armed Forces are the military forces of the United States. The armed forces consists of six service branches: the Army, Marine Corps, Navy, Air Force, Space Force, and Coast Guard. The president of the United States is the ...
from the kingdom and impose import tariffs on Saudi oil." On 11 June, the Dow Jones Industrial Average plunged 1861 points, around 7%, as fears of a second wave of
COVID-19 Coronavirus disease 2019 (COVID-19) is a contagious disease caused by a virus, the severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2). The first known case was identified in Wuhan, China, in December 2019. The disease quick ...
along with a press conference from Federal Reserve chairman
Jerome Powell Jerome Hayden "Jay" Powell (born February 4, 1953) is an American attorney and investment banker who has served as the 16th chair of the Federal Reserve since 2018. After earning a degree in politics from Princeton University in 1975 and a ...
on the previous day weighed on investor sentiment. The Dow Jones Industrial Average rose throughout August 2020, reaching a peak of 29,199 points on 3 September 2020 at 9:48 EST before plunging nearly 1,000 points throughout the remainder of the day. On 16 September, Jerome Powell and the FOMC gave their final economic projections, which led the DJIA falling approximately 4% over the next three days. Throughout September, the DJIA saw a substantial −9% retreat amidst growing fears of a second COVID-19 infection wave, lack of federal stimulus outlook, and U.S. election instability. However, optimism soon recovered, and the DJIA and S&P 500 both closed 2020 at all-time highs of 30,606 and 3,756 respectively. The MSCI ACWI Index also had recovered to its February peak by September 2020, and closed 2020 at an all-time high of 645 points.


See also

* COVID-19 recession * Economic impact of the COVID-19 pandemic * Financial market impact of the COVID-19 pandemic * 2020 Congressional insider trading scandal


References

;Bundled references {{DEFAULTSORT:Stock market crash, 2020 2020 in economics February 2020 events March 2020 events April 2020 events Financial crises Economic impact of the COVID-19 pandemic in the United States Stock market crashes