2020 Stock Market Crash
Submission 38,487
Overview
2020 Stock Market Crash refers to the global stock market crash that occurred on March 9th, 2020 (also referred to as Black Monday), followed by a larger crash that took place on March 12th. The crash was provoked by a number of factors, including the COVID-19 outbreak and a rapid fall in the oil prices due to the OPEC and Russia failing to negotiate a decrease in oil production.
Background
On February 24th, 2020, the Dow Jones Industrial Average (DJIA) and FTSE 100 Index dropped more than 3% due to the COVID-19 outbreak spread worsening outside China during the preceding weekend.[1][2] On February 27th, 2020, stock market indices NASDAQ-100, the S&P 500 Index and DJIA reported sharpest falls since 2008.[3] On February 28th, stock markets worldwide reported their largest single-week declines since the 2008 financial crisis.[4][5]
On Tuesday, March 5th, 2020, the Organization of the Petroleum Exporting Countries (OPEC) and Russia failed to agree on cuts in oil production which would compensate for the projected decreased demand for oil in 2020 due to the COVID-19 affection productions in China. On Saturday, March 7th, both Russia and Saudi Arabia announced increases in oil production, with oil prices reacting with a 25 percent fall.[6][7]
March 9th Crash (Black Monday)
On March 9th, stock markets globally opened with rapid falls, The United States' Dow Jones Industrial Average lost more than 2000 points,[8] hitting several "circuit breakers." NASDAQ Composite lost about 7.3 percent, S&P 500 lost 7.6 percent.[8] Oil companies such as BP, Royal Dutch Shell and Petrobras lost over 15 percent of their stock value on NYSE.
The fall was described by multiple news outlets such as The New York Times and Financial Times as "market crash,"[9][10][11] with a number of articles referring to the event as "Black Monday"[8][12] as a reference to the 1929's Black Tuesday.
March 12th Crash
On Thursday March 12th, 2020, the S&P 500 Index lost over 9.5 percent (260 points), closing at 2,480 points.[15] Dow Jones Industrial Average lost nearly 10 percent (2352,6 points), closing at 21,200 points. NASDAQ lost over 9.4 percent (750 points), closing at 7,200 points. The crashes marked the worst day since the Black Monday of 1987 for S&P 500 and DJIA.
Online Reactions
Following the news of the March 9th, 2020, crash, multiple memes about it were posted online, primarily in stock trading communities such as 4chan's /biz/ and /r/WallStreetBets, with memes about the crash also appearing in major meme communities on Reddit, on Instagram and on iFunny. For example, on March 8th, 2020, Instagram[13] user humanity.gone24 posted a Prequel Meme that received over 5,900 likes in one day (shown below, left). On the same day, iFunny[14] user Icedietime used an old screenshot of multiple Pink Wojak threads on /biz/ as a reaction to S&P 500 graph showing a 244 point fall, with the post accumulating over 1,300 smiles (shown below, right).
The larger March 12th, 2020, crash was followed with similar reactions from users on Twitter, Reddit, 4chan and other online platforms. On March 13th, 2020, Redditor[16] yamideath posted an inquiry in /r/OutOfTheLoop asking about the stock market crash, with the thread accumulating over 1,500 upvotes in eight hours.
Search Interest
External References
[1] CNBC – Dow falls 350 points Friday to cap the worst week for Wall Street since the financial crisis
[2] BBC – Global stock markets plunge on coronavirus fears
[3] CNN – Dow falls 1,191 points -- the most in history
[4] CNBC – Global stocks head for worst week since the financial crisis amid fears of a possible pandemic
[5] CNBC – European stocks fall 12% on the week as coronavirus grips markets
[6] CNBC – Oil plunges 10% for worst day in more than 5 years after OPEC+ fails to agree on a massive production cut
[7] Reuters – Oil plunges 25%, hit by erupting Saudi-Russia oil price war
[8] BBC – Global shares plunge in worst day since financial crisis
[9] The New York Times – Why Markets Crashed on Monday
[10] Financial Times – How this market crash is different from 2008, and the same
[11] The Washington Post = A market crash was coming, even before coronavirus
[12] The Telegraph – Oil and stocks rebound after ‘Black Monday’ rout – live updates
[13] Instagram – humanity.gone24
[14] iFunny – Icedietime
[15] The Guardian – Wall Street and FTSE 100 plunge on worst day since 1987 – as it happened
Share Pin