What global health emergency caused the worldwide stock-market crash of February and March 2020?
Answer
COVID-19 pandemic
The COVID-19 pandemic caused the worldwide stock-market crash of February and March 2020.
As the coronavirus spread internationally, governments introduced travel restrictions, business closures, and stay-at-home measures. Investors rapidly marked down expectations for company earnings, employment, trade, and economic activity. Major indexes fell into bear-market territory at extraordinary speed.
The S&P 500 reached a record close on February 19, 2020, then fell sharply. On March 16, the index dropped 12 percent, one of the most severe daily declines in its history. Central banks and governments responded with emergency interest-rate cuts, asset purchases, fiscal support, and public-health measures.
The 2020 crash was unusual because it combined a sudden external health shock with an economic shutdown and an oil-price dispute. Markets later rebounded strongly, although the pandemic continued to cause major disruptions and uneven economic effects.