Black Thursday (2020) facts for kids
| Date | March 12, 2020 |
|---|---|
| Type | Stock market crash |
| Cause |
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Black Thursday was a global stock market crash on March 12, 2020 as part of the greater 2020 stock market crash. Global stock markets suffered the greatest single-day fall since the 1987 stock market crash.
Following Black Monday three days earlier, Black Thursday was caused by the 2019–20 coronavirus pandemic and a lack of investor confidence in United States President Donald Trump after he added a 30-day travel ban against the Schengen Area.
Images for kids
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The Federal Reserve has expanded its balance sheet greatly through three quantitative easing periods since the 2008 financial crisis. In September 2019, a spike in the overnight repo 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.
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Federal Reserve Chairman Jerome Powell announces a 50 basis point cut in the federal funds rate target on 3 March 2020 in light of "evolving risks to economic activity" from the coronavirus
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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.
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