The Dow Jones Industrial Average’s largest one-day percentage fall during the 2020 COVID-19 crash was 12.9% on March 16, 2020.
The decline came as the COVID-19 pandemic spread internationally, governments introduced restrictions, and investors reassessed corporate earnings, travel, energy demand, and credit risk. The Federal Reserve and other central banks responded with emergency rate cuts, lending facilities, and large-scale asset purchases.
The 2020 crash was exceptionally fast. U.S. equities moved from record highs into bear-market territory in weeks, while oil prices also collapsed as demand fell and an oil-supply dispute added pressure. Trading halts known as circuit breakers were triggered several times during the turmoil.
Markets then rebounded sharply after fiscal stimulus, monetary support, vaccine progress, and changing expectations. The speed of both the fall and recovery distinguished this episode from slower, multi-year market declines.