The stock market crash of 2020 began on Monday, March 9, with histories largest point plunge for the Dow Jones Industrial Average (DJIA) up to that date. It was followed by two more record-setting point drops on March 12 and March 16. The stock market crash included the three worst point drops in U.S. history.
The market started to rebound on March 24 but then fell again on April 1 due to the continuous impact that the coronavirus is having on companies. Coronavirus has led to our economy losing 700,000 jobs in March alone. This hurts the economy in 3 ways: 1. Employees can’t go to work and the companies obviously, need their employees to produce goods and to provide services; 2. Some workers lose their source of income and this affects the economy because they can no longer buy as many products and services; 3. The government is sending money to workers who have lost their job making the US go into more debt.
Since companies aren’t making as much money, their value drops leading to their stock price dropping. Not only are companies’ sales down, they also are losing money from their shares in the market. This beats a company while it is already down, causing a rapid downward spiral.
The good news is that the value of the dollar hasn’t gone down and the government and citizens has been taking action trying to slow it down and we should have a good end to 2020 in the market.
Liberty Brothers 