The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019

Wall Street Suffers Worst Decline Since 1987 Crash

The coronavirus emergency sent stocks crashing on Thursday to their worst losses since the Black Monday crash of 1987, extending a plunge that has eliminated most of Wall Street’s big gains since Donald Trump’s 2016 election.

The Standard &Poors 500 measure fell 9.5 percent, a drop of 26.7 percent from its all-time high, set one month ago. That left the S&P well past the 20 percent threshold to signify a bear market, ending an unprecedented, decade-long bull market. Likewise, the Dow Jones Industrial Average fell ten percent for its worst day since a historic 23 percent drop on Oct. 19, 1987.

European markets lost 12 percent in one of their worst days ever, despite the European Central Bank’s promise to buy bonds.

The fall came so quickly after the opening bell that it triggered an automatic, 15-minute trading halt for the second time this week. Those “circuit breakers” were adopted after the 1987 crash, and hadn’t been activated since 1997.

The Dow turned upward briefly after the Federal Reserve announced measures to ease “highly unusual disruptions” in the Treasury market. But that respite faded before the market close.

On Wednesday, the Dow finished the day down more than 20 percent from its all-time high, set just last month, officially entering bear market territory for the first time in over a decade.

Both the coronavirus crisis and the chaos on Wall Street spurred fears of recession.

IMAGE: The New York Stock Exchange building is seen from Wall Street in lower Manhattan. REUTERS/Mike Segar

Advertising

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Rev. Al Sharpton, near left, with members of Tyre Nichols' family

Youtube Screenshot

Black Lives Matter.

Now, can everyone understand the desperate, defiant power of those three words? Can all those who tried to act as though they didn’t get why the phrase needed to be said — over and over — finally stop pretending?

Keep reading...Show less

Vladimir Putin

Youtube Screenshot

Militarily and politically as well as economically, the war in Ukraine has been a major drain on Russia. President Vladimir Putin and his allies in the Kremlin were hoping for a quick, easy invasion, but Ukrainian forces have been much more skillful fighters than Putin anticipated.

Moreover, the invasion of Ukraine has had an unintended consequence: the expansion of the North Atlantic Treaty Organization (NATO). Sweden and Finland, for many years, stayed out of NATO; in 2022, they applied for membership. And U.S. President Joe Biden, in contrast to former President Donald Trump’s anti-NATO views, has welcomed NATO’s expansion.

Keep reading...Show less
{{ post.roar_specific_data.api_data.analytics }}