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'''Black Thursday'''<ref>{{Cite web|url=https://business.inquirer.net/292328/psei-sees-worst-freefall-in-12-years|title=Black Thursday: PSEi sees worst freefall in 12 years|date=March 12, 2020|accessdate=March 12, 2020|website=[[Philippine Daily Inquirer]]|author=Doris Dumlao-Abadilla}}</ref><ref>{{Cite web|url=https://www.newindianexpress.com/business/2020/mar/12/pandemic-pandemonium-world-markets-crash-into-bear-country-on-black-thursday-2115906.html|title=Pandemic pandemonium: World markets crash into bear country on Black Thursday|website=[[The New Indian Express]]|date=March 12, 2020|accessdate=March 12, 2020|author=Jonathan Ananda}}</ref><ref>{{Cite web|url=https://www.icis.com/explore/resources/news/2020/03/12/10481846/europe-crude-petchems-prices-extend-losses-as-stocks-suffer-black-thursday|title=Europe crude, petchems prices extend losses as stocks suffer 'Black Thursday'|author=Jonathan Lopez|website=Independent Commodity Intelligence Services|date=March 12, 2020|accessdate=March 12, 2020}}</ref> is an ongoing global [[stock market crash]] on March 12, 2020. Global stock markets suffered from the greatest single-day fall since the [[Black Monday (1987)|1987 stock market crash]].<ref name="CNBC">{{Cite web|url=https://www.cnbc.com/2020/03/11/futures-are-steady-wednesday-night-after-dow-closes-in-bear-market-traders-await-trump.html|title=Dow drops more than 8%, heads for biggest one-day plunge since 1987 market crash|website=[[CNBC]]|date=March 12, 2020|accessdate=March 12, 2020|author1=Fred Imbert|author2=Thomas Franck}}</ref> Following [[Black Monday (2020)|Black Monday]] three days earlier, Black Thursday was caused by the [[2019–20 coronavirus pandemic|coronavirus pandemic]] and investors feeling concerned after US president [[Donald Trump]] imposed a 30-day [[Travel restrictions related to the 2019–20 coronavirus pandemic|travel ban]] against the [[Schengen Area]].<ref name="NYT">{{Cite web|url=https://www.nytimes.com/2020/03/12/business/stock-market-today.html|title=Stocks Plunge as Trump’s Travel Ban Adds to Distress: Live Updates|website=[[The New York Times]]|date=March 12, 2020|accessdate=March 12, 2020}}</ref>
'''Black Thursday'''<ref>{{Cite web|url=https://business.inquirer.net/292328/psei-sees-worst-freefall-in-12-years|title=Black Thursday: PSEi sees worst freefall in 12 years|date=March 12, 2020|accessdate=March 12, 2020|website=[[Philippine Daily Inquirer]]|author=Doris Dumlao-Abadilla}}</ref><ref>{{Cite web|url=https://www.newindianexpress.com/business/2020/mar/12/pandemic-pandemonium-world-markets-crash-into-bear-country-on-black-thursday-2115906.html|title=Pandemic pandemonium: World markets crash into bear country on Black Thursday|website=[[The New Indian Express]]|date=March 12, 2020|accessdate=March 12, 2020|author=Jonathan Ananda}}</ref><ref>{{Cite web|url=https://www.icis.com/explore/resources/news/2020/03/12/10481846/europe-crude-petchems-prices-extend-losses-as-stocks-suffer-black-thursday|title=Europe crude, petchems prices extend losses as stocks suffer 'Black Thursday'|author=Jonathan Lopez|website=Independent Commodity Intelligence Services|date=March 12, 2020|accessdate=March 12, 2020}}</ref> is an ongoing global [[stock market crash]] on March 12, 2020. Global stock markets suffered from the greatest single-day fall since the [[Black Monday (1987)|1987 stock market crash]].<ref name="CNBC">{{Cite web|url=https://www.cnbc.com/2020/03/11/futures-are-steady-wednesday-night-after-dow-closes-in-bear-market-traders-await-trump.html|title=Dow drops more than 8%, heads for biggest one-day plunge since 1987 market crash|website=[[CNBC]]|date=March 12, 2020|accessdate=March 12, 2020|author1=Fred Imbert|author2=Thomas Franck}}</ref> Following [[Black Monday (2020)|Black Monday]] three days earlier, Black Thursday was caused by the [[2019–20 coronavirus pandemic|coronavirus pandemic]] and investors feeling concerned after US president [[Donald Trump]] imposed a 30-day [[Travel restrictions related to the 2019–20 coronavirus pandemic|travel ban]] against the [[Schengen Area]].<ref name="NYT">{{Cite web|url=https://www.nytimes.com/2020/03/12/business/stock-market-today.html|title=Stocks Plunge as Trump’s Travel Ban Adds to Distress: Live Updates|website=[[The New York Times]]|date=March 12, 2020|accessdate=March 12, 2020}}</ref> The [[Dow Jones Industrial Average | Dow]] fell 2,352 points.<ref>https://www.wsj.com/articles/global-stocks-follow-u-s-markets-lower-11583975524</ref>


==Background==
==Background==

Revision as of 20:24, 12 March 2020

Black Thursday
TypeStock market crash
Cause

Black Thursday[1][2][3] is an ongoing global stock market crash on March 12, 2020. Global stock markets suffered from the greatest single-day fall since the 1987 stock market crash.[4] Following Black Monday three days earlier, Black Thursday was caused by the coronavirus pandemic and investors feeling concerned after US president Donald Trump imposed a 30-day travel ban against the Schengen Area.[5] The Dow fell 2,352 points.[6]

Background

See also: Socio-economic impact of the 2019–20 coronavirus pandemic and Black Monday (2020)
On March 11, 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.

On March 9, 2009, the stock market hit its lowest close during the Great Recession.[7] Since then, the US stock market was a bull market and held an 11-year streak despite serious economic challenges such as the China–United States trade war, the European debt crisis, Brexit, and price of oil conflicts.[8] The stock market became extremely volatile starting on Monday, February 24, 2020, when the Dow Jones Industrial Average and FTSE 100 dropped more than 3% as the coronavirus pandemic spread worsened substantially outside China over the weekend.[9][10]

On March 9, 2020, known as "Black Monday", global stock markets suffered from the greatest fall since 2008, during the Great Recession.[11] The crash was caused by a combination of the coronavirus pandemic and the Russia–Saudi Arabia oil price war.[12][13] In the United States, a circuit breaker was triggered after stocks dropped sharply, halting trade for fifteen minutes.[14] This was the first time that the 7%-drop circuit breaker was triggered since being implemented in 2013.[5]

On March 11, 2020, the Dow Jones Industrial Average entered a bear market (i.e. 20% drop from the most recent peak) after an 11-year bull market run.[15] On March 12, 2020, US president Donald Trump announced a temporary 30-day travel ban against Europe in response to the coronavirus pandemic.[16] The details of the travel ban were later clarified; the ban affects people who are not US citizens who in the past two weeks visited the 26-member Schengen Area.[16] The travel ban notably excludes the United Kingdom, Croatia, Cyprus, Ireland, Turkey and Ukraine.[16] Trump did not consult the European Union before imposing the travel ban.[16] Carmen Reinicke of Business Insider wrote that Trump's address to the nation "failed to calm investors' concerns about the economic fallout from the coronavirus outbreak."[17]

Crash

Soon after trading began, a circuit breaker was triggered due to panic selling, leading to a 15-minute halt on trading.[17] 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 March 12–13, but the market quickly resumed its decline soon after.[18] The Dow Jones Industrial Average lost all of its gains from its lowest point in 2018.[19] US stock markets suffered from the greatest single-day fall since the 1987 stock market crash, surpassing the worst single-day percentage decline during the Great Recession.[4] Trump reacted to the crash by defending his travel ban and predicting that the stock market would eventually bounce back.[20]

The FTSE MIB Italian index closed with a −16.92% loss, the worst in its history.[21] The cryptocurrency Bitcoin dropped 26%, its worst day in 7 years.[22] Other cryptocurrencies fell sharply as well.[23]

See also

References

  1. ^ Doris Dumlao-Abadilla (March 12, 2020). "Black Thursday: PSEi sees worst freefall in 12 years". Philippine Daily Inquirer. Retrieved March 12, 2020.
  2. ^ Jonathan Ananda (March 12, 2020). "Pandemic pandemonium: World markets crash into bear country on Black Thursday". The New Indian Express. Retrieved March 12, 2020.
  3. ^ Jonathan Lopez (March 12, 2020). "Europe crude, petchems prices extend losses as stocks suffer 'Black Thursday'". Independent Commodity Intelligence Services. Retrieved March 12, 2020.
  4. ^ a b Fred Imbert; Thomas Franck (March 12, 2020). "Dow drops more than 8%, heads for biggest one-day plunge since 1987 market crash". CNBC. Retrieved March 12, 2020.
  5. ^ a b "Stocks Plunge as Trump's Travel Ban Adds to Distress: Live Updates". The New York Times. March 12, 2020. Retrieved March 12, 2020.
  6. ^ https://www.wsj.com/articles/global-stocks-follow-u-s-markets-lower-11583975524
  7. ^ Sean Williams (March 10, 2020). "Stock Market Crash 2020: Everything You Need to Know". The Motley Fool. Retrieved March 12, 2020.
  8. ^ Sean Williams (March 12, 2020). "RIP to the Longest Bull Market in History (2009-2020)". The Motley Fool. Retrieved March 12, 2020.
  9. ^ "Global stock markets plunge on coronavirus fears". Archived from the original on February 25, 2020. Retrieved February 25, 2020.
  10. ^ Imbert, Fred; Huang, Eustance (February 27, 2020). "Dow falls 350 points Friday to cap the worst week for Wall Street since the financial crisis". CNBC. Archived from the original on February 28, 2020. Retrieved February 28, 2020.
  11. ^ "Global stock markets post biggest falls since 2008 financial crisis". The Guardian. March 9, 2020. Retrieved March 12, 2020.
  12. ^ "Black Monday: Shares face biggest fall since financial crisis". BBC News. March 9, 2020. Archived from the original on March 9, 2020. Retrieved March 9, 2020. Analysts described the market reaction as "utter carnage".
  13. ^ Li, Yun (March 8, 2020). "Dow sinks 2,000 points in worst day since 2008, S&P 500 drops more than 7%". CNBC. Archived from the original on March 9, 2020. Retrieved March 10, 2020.
  14. ^ "Global shares plunge in worst day since financial crisis". BBC. March 9, 2020. Archived from the original on March 9, 2020. Retrieved March 10, 2020.
  15. ^ "Dow closes in bear market amid volatile session". Fox Business. March 11, 2020. Retrieved March 11, 2020.
  16. ^ a b c d Megan Specia (March 12, 2020). "What You Need to Know About Trump's European Travel Ban". The New York Times. Retrieved March 12, 2020.
  17. ^ a b Carmen Reinicke (March 12, 2020). "Dow slips 2,000 points as Trump coronavirus response disappoints, Fed funding boost fades". Market Insider. Retrieved March 12, 2020.
  18. ^ "Stocks Continue Tumble Even After Fed Steps In: Live Updates". The New York Times. March 12, 2020. Retrieved March 12, 2020.
  19. ^ Arancibia, Juan (March 12, 2020). "Stocks Off Session Lows; Dow Wipes Out All Gains From 2018 Low". www.investors.com. Retrieved March 12, 2020.
  20. ^ Brian Naylor; Roberta Rampton (March 12, 2020). "Trump Defends Travel Ban, Says Stock Market Will Bounce Back". NPR. Retrieved March 12, 2020.
  21. ^ "Borse, Piazza Affari chiude a -16,92%. E' il peggior crollo di sempre". Affaritaliani.it (in Italian). March 12, 2020. Retrieved March 12, 2020.
  22. ^ "Down 26%: Bitcoin Sees Worst Sell-Off in 7 Years as Coronavirus Spurs Flight to Safety". CoinDesk. March 12, 2020. Retrieved March 12, 2020.
  23. ^ Bambrough, Billy. "Crypto Carnage Wipes Out 2020 Gains For Bitcoin, Ethereum, Ripple's XRP, Litecoin, And Bitcoin Cash". Forbes. Retrieved March 12, 2020.
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