2020 stock market crash facts for kids
The 2020 stock market crash is a global stock market crash that began on 20 February 2020 during the 2019–20 coronavirus pandemic. The Dow Jones Industrial Average, S&P 500 Index, and the NASDAQ-100 all fell into short-term decline on 27 February during one of the worst trading weeks since the financial crisis of 2007–08.
Markets over the following week (2–6 March) became extremely bad, with swings of 3% or more being made per daily session (except for 6 March). On 9 March, all three Wall Street indices fell more than 7% and most global markets reported severe losses, due to the response of the 2019–20 coronavirus pandemic and the Russia–Saudi Arabia oil price war.
This became known as Black Monday, and at the time was the worst drop since the Great Recession in 2008.
Three days after Black Monday there was another drop, Black Thursday, where stocks across Europe and North America fell more than 9%.
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The Federal Reserve has expanded its balance sheet greatly through three quantitative easing periods since the financial crisis of 2007–2008. In September 2019, a spike in the overnight repo market interest rate caused the Federal Reserve to introduce a fourth round of quantitative easing; the balance sheet would expand parabolically following the stock market crash.
On 11 March 2020, the Dow Jones Industrial Average ended an 11-year bull market run and entered a bear market. Symbolic statues from the Frankfurt Stock Exchange pictured.
2020 stock market crash Facts for Kids. Kiddle Encyclopedia.