Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
Record index fall
World exchanges

How will a record drop in the Dow Jones index affect the market?

21.11.2020
2 min read

Dow Jones record drop: causes

The American stock market is in a record decline. One of the key indicators, the Dow Jones index, dropped by 13% in previous trading, the worst result since 1987, when the “black Monday” recorded a decline of 22.6%.
The coronavirus epidemic has triggered a global financial crisis, which has affected all processes and exacerbated existing problems. It is rather difficult to assess the consequences of the current situation. Experts agree that the economic recovery will be long lasting, and the first positive dynamics should be expected by the end of the year.
Now the American Dow Jones Industrial Average index has 20 917.5 points. Apart from the coronavirus, the words of the US president also had their impact on the decline. Donald Trump said that the economy is in recession, and the epidemic and related restrictions may last longer than everyone thinks. After this speech of the head of the White House, quotes on the stock exchange fell sharply, which led to a decline in the Dow Jones index.
It is also worth noting that no effective measures were taken in time to keep the liquidity at an appropriate level. This fact also contributed to panic in the market and collapse of its important indicators. Only after that they started talking about the necessity of mass purchase of treasury bonds and mortgage bonds. Programs were launched to support a number of segments and introduce $800 billion in tax benefits. The latter will be aimed primarily at airlines and the tourism industry.

Record index fall

In March, the OPEC+ transaction was terminated, which regulated oil production volumes. Russia did not want to reduce the amount of crude produced, as a result of which Saudi Arabia reduced the price per barrel and caused panic in the market.
The situation improved slightly after Donald Trump officially declared the emergency situation in the country. After his words, the major indices on the stock exchanges began to grow by 5-6%.
However, experts believe that the measures introduced so far are not enough to overcome the crisis with minimal losses. It is difficult to assess the full extent of damage caused by the epidemic and the oil war between Saudi Arabia and Russia. It is important for the US to contain the fall of key indices and financially support the market, especially since investors are not in a hurry to invest money, but prefer to keep cash on hand until it is clear how to proceed. Experts hope that such a serious collapse of Dow Jones, as observed recently, will not happen, and gradually the economy will show positive dynamics.

Tags: World exchanges
0
Previous Post Tesla Inc. is due to enter the S&P 500 Index: analysts overview Next Post BlackRock Inc. investment corporation prefers to survive the cash crisis

You Might Also Like

The St. Petersburg International Mercantile Exchange
World exchanges
The St. Petersburg International Commodity Exchange has shown significant growth for 2020
27.10.2021
Amsterdam Stock Exchange
World exchanges
Amsterdam Stock Exchange: the oldest trading platform in the world
03.08.2024
gold is rising in price
World exchanges
Gold is rising in price: forecast of the precious metal’s value
24.01.2024
ADX Exchange
World exchanges
The ADX has become the leader in the number of transactions with foreigners
18.11.2022
Tullow Oil
World exchanges
British energy company Tullow Oil plans to delist on the Irish stock exchange
04.12.2022
SBI Holdings
World exchanges
Japanese SBI Holdings plans to launch its own exchange for tokenized securities
01.11.2020

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Spokesperson
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Spokesperson
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Spokesperson
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Spokesperson
16.05.2020

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics