Black Monday 2020: why stock market crashed

How did the stock market crash happen? The majority of analysts blame the Monday drop and the massive sell-off on negative coronavirus headlines. The spread of the frightening disease contributes to a broader slowdown in the world’s economy, making the threat of global recession no longer abstract. But is the coronavirus really behind the stock market crash? Or is there another explanation deep within the global financial system? Let’s figure out what caused stock market crash 2020.

Reason 1: rising fears of coronavirus
The ongoing coronavirus threat is named as the number-one reason behind the Monday crash. Although investors have not seen big slowdowns in the US economy yet, they are still worried about the virus’s impact in perspective, as with the virus spread more and more people are going to be stuck at home, being pulled out of economic activity. From sick pays to loans, owners of medium and small businesses also get seriously affected by the epidemic.

The fears are aggravated by the global situation, as China and Italy were forced to take strict quarantine measures. The stocks in Europe are attempting to rebound after dropping about 8 per cent last week, as the number of coronavirus cases continues to rise.

According to the World Health Organisation’s report, as of March 9, 2020 there were 110,000 confirmed cases, which caused 3,800 deaths. What is particularly worrying is that, while China has a decreased number of newly confirmed cases, new confirmations of Covid-19 are increasing around the world....

https://capital.com/stock-market-crash-2020

NewJeffCT

(56,828 posts)

4. February 5th

Reply to mia (Original post)

Tue Apr 14, 2020, 09:03 AM

Apr 2020

was the final Senate vote on impeachment

ok_cpu

(2,051 posts)

8. I didn't put two and two together

Reply to NewJeffCT (Reply #4)

Tue Apr 14, 2020, 09:53 AM

Apr 2020

until I saw your post and the calendar at the same time.

We're to believe that he was so consumed by the impeachment that he spent the weekend of the absolute height of the proceedings at Mar a Lago golfing.

It's double damning...shows he knew the fix was in re:impeachment and still was not taking COVID seriously.

Edit to add: Imagine if he were competent instead of arrogant and lazy. He could have addressed the crisis and undercut impeachment by saying something like "The Senate can remove me if they want. I don't have time to worry about it, we have a public health crisis to address."

And then actually worked it...