page_title: 2020 stock market crash
section_title: 2–6 March
hierarchical_section_title: 2020 stock market crash / 2–6 March
caption_attribution_description: FOMC Chair Powell answers a reporter's question at the March 3, 2020 press conference. FOMC meetings, calendars, statements, and minutes are available here: &lt;a href="http://www.federalreserve.gov/monetarypolicy/fomccalendars.htm" rel="noreferrer nofollow"&gt;www.federalreserve.gov/monetarypolicy/fomccalendars.htm&lt;/a&gt;
context_page_description: The 2020 stock market crash is a global stock market crash that began on 20 February 2020. On 12 February, the Dow Jones Industrial Average, the NASDAQ Composite, and S&P 500 Index all finished at record highs. From 24 to 28 February, stock markets worldwide reported their largest one-week declines since the 2008 financial crisis, thus entering a correction. Global markets into early March became extremely volatile, with large swings occurring in global markets. On 9 March, most global markets reported severe contractions, mainly in response to the COVID-19 pandemic and an oil price war between Russia and the OPEC countries led by Saudi Arabia. This became colloquially known as Black Monday. At the time, it was the worst drop since the Great Recession in 2008.
  Three days after Black Monday there was another drop, Black Thursday, where stocks across Europe and North America fell more than 9%. Wall Street experienced its largest single-day percentage drop since Black Monday in 1987, and the FTSE MIB of the Borsa Italiana fell nearly 17%, becoming the worst-hit market during Black Thursday.
context_section_description: Over the preceding weekend, Bank of Japan Governor Haruhiko Kuroda stated that the Bank of Japan would "strive to stabilise markets and offer sufficient liquidity via market operations and asset purchases", and the Bank of Japan subsequently announced that it would repurchase up to ¥500 billion ($4.6 billion) worth of government bonds. On Monday 2 March, European and Asia-Pacific stock markets mostly ended the previous week's consecutive daily losses, while in the United States, the S&P 500 gained 3.9%, the NASDAQ Composite gained 3.7%, and the Dow Jones Industrial Average finished 1,126 points up (or 4.4%; its largest one-day gain since 2009). Oil futures saw their largest daily gain of 2020, while yields on 10-year and 30-year U.S. Treasury securities fell to 1.03% and 1.62% respectively.
  On 3 March, the finance ministers and central bank executives of the G7 countries released a joint statement to "reaffirm our commitment to use all appropriate policy tools" to address the socioeconomic impact of the outbreak including "fiscal measures where appropriate" with the central banks continuing to "fulfill their mandates, thus supporting price stability and economic growth." On the same day, the Reserve Bank of Australia and the Central Bank of Malaysia announced overnight rate cuts of 25 basis points (which brought the Australian rate to its lowest level in history), Bank Indonesia announced it would cut its reserve requirement from 8 to 4 percent starting on 16 March, while the People's Bank of China declined to conduct open market operations. South Korean Finance Minister Hong Nam-ki announced a ₩11.7 trillion ($9.8 billion) fiscal stimulus program.
  Also on 3 March, due to the Bank of Mexico declining to cut its overnight rate further, Mexican Finance Minister Arturo Herrera Gutiérrez announced a fiscal stimulus program to accelerate government spending. The Federal Open Market Committee lowered the federal funds rate target by 50 basis points with Federal Reserve Chair Powell stating that the central bank "saw a risk to the outlook for the economy and chose to act" and that "the magnitude and persistence of the overall effect [of the outbreak] on the U.S. economy remain highly uncertain". At the close of trading on 3 March, European and Asia-Pacific stock markets had mostly risen, but the S&P 500, the NASDAQ Composite, and the Dow Jones Industrial Average all fell (with the Dow reversing more than two-thirds of the previous day's gain). Oil futures rose and the yield on 10-year and 30-year U.S. Treasury securities fell to record lows of 0.91% and 1.60% respectively (with the fall below 1% on the 10-year securities occurring for the first time in history).
  On 4 March, Asia-Pacific and European stock markets continued mostly rising (with the KOSPI alone rising by 2%), while the S&P 500 rose by 4.2%, the NASDAQ Composite rose by 3.8%, and the Dow Jones Industrial Average reversed the previous day's loss by rising by 1,173 points (or 4.5%). However, oil futures fell and the yield on 10-year and 30-year U.S. Treasury securities finished at 0.99% and 1.64% respectively. The Bank of Canada and the Saudi Arabian Monetary Authority announced 50 basis point cuts to their overnight and repo rates respectively, International Monetary Fund Managing Director Kristalina Georgieva announced a $50 billion emergency credit-line program to assist low-income and emerging market countries with policy responses to the epidemic, and the Central Bank of Brazil announced that it would auction up to $1 billion in foreign exchange swaps.
  On 5 March, Asia-Pacific stock markets continued rising while European stock markets closed down. The S&P 500, the NASDAQ Composite, and Dow Jones Industrial Average all fell by more than 3%. Oil futures rose following reports of OPEC agreeing to production cuts with Russia, while the yields on 10-year and 30-year U.S. Treasury securities fell to 0.91% and 1.54% respectively. The Central Bank of Argentina cut its bank rate by an additional 200 basis points, and after declining to cut its overnight rate on 27 Febru
caption: Federal Reserve Chairman Jerome Powell announces a 50 basis point cut in the federal funds rate target on 3 March 2020 in light of "evolving risks to economic activity" from the coronavirus
exif: {"Image Copyright": ""}