The Dow Jones plunged 2,352 points, or 10%—the steepest drop since a 22.6% drop on Oct. 19, 1987.
As the coronavirus pandemic continues to ravage the United States and the world, Wall Street suffered its worst day ever since 1987 on Thursday.
The Dow Jones plunged 2,352 points, or 10%, the steepest drop since a 22.6% drop on Oct. 19, 1987. Thursday’s losses also far surpassed the nearly 8% drop on Oct. 15, 2008, during the height of the Great Recession.
The S&P 500 fell 9.5% and the Nasdaq dropped by 9.4%, and all three indexes are now down more than 25% in the past three weeks.
“The news just continues to get worse, and the travel ban puts an exclamation point on the weakness we’re going to see in global GDP and, in turn, the U.S.,” said Liz Ann Sonders, chief investment strategist at Charles Schwab. “We’re starting to get a sense of how dire the impact on the economy is going to be. Each day the news doesn’t get better, it gets worse. It’s now hit Main Street to a more significant degree.”
Thursday’s crash came after President Trump tried to reassure the nation during a Wednesday evening primetime speech.
If the sell-off was any indication, he did not succeed. Nor did the Fed, which on Thursday offered at least $1.5 trillion in loans to banks to help them weather the storm.
Meanwhile, the U.S. Chamber of Commerce sent a letter to Congress on Thursday asking lawmakers to pass a coronavirus emergency relief bill that does not include paid sick leave. Lawmakers are currently working to figure out how to address the economic fallout of the coronavirus outbreak.
“[W]e believe this crisis should not be used as an opportunity to try to pass legislation that is poorly tailored to the situation and will not be signed into law,” the business lobbying group wrote. “This emergency bill should not create a federal, one-size-fits-all, permanent leave mandate on employers”