What event caused the record one-day global stock-market plunge on March 16, 2020?
Answer
COVID-19 pandemic
The COVID-19 pandemic caused the record one-day global stock-market plunge on March 16, 2020.
As the novel coronavirus spread internationally, governments introduced travel restrictions, business closures, quarantine measures, and social-distancing rules. Investors rapidly revised expectations for company earnings, employment, trade, and economic growth. The shock affected both advanced and emerging markets.
On March 16, 2020, major U.S. indexes recorded one of their largest single-day percentage declines, while stock markets around the world also fell sharply. The Federal Reserve and other central banks responded with emergency interest-rate cuts, asset purchases, and lending programs. Governments announced large fiscal-support packages.
The 2020 crash is commonly called the COVID-19 crash or coronavirus crash. It differed from the 2008 crisis because its immediate trigger was a public-health emergency and the economic restrictions used to contain it, although financial vulnerabilities also shaped the market response.