Dow Jones Took A Huge Hit With Single Day Largest Point Drop On Monday

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The stock market has taken quite the beating over the last couple weeks with the coronavirus outbreak and the oil war between Saudi Arabia.

As soon as the market opened up on Monday everything plummeted. Even the Dow Jones Industrial Averages saw it’s greatest single-day point loss dropping a painful 2,013 points.

According to NBC News,

Wall Street took a beating on Monday, as collapsing oil prices and fears about the impact of the coronavirus almost nudged the American economy out of the longest bull market in history, exactly 11 years to the day since it began.

The Dow Jones Industrial Average closed the day with a loss of around 2,000 points Monday, part of a global market rout that saw spiraling sell-offs in the energy sector amid the biggest drop for crude oil since the Gulf War in 1991. The S&P 500 and the Nasdaq saw a decline of around 7 percent for one of the worst days since the financial crisis.

Crude oil prices cratered by 25 percent after the world’s producing countries failed to strike a deal at a meeting between oil cartel members in Vienna last week. The stalemate continued over the weekend, with Saudi Arabia and Russia reportedly planning to ramp up production on their own terms after the current deal expires at the end of the month. By Monday morning, traders on Wall Street were bracing for a meltdown.

The ensuing sell-off prompted action from the White House, with Wall Street executives scheduled to meet with President Donald Trump on Wednesday to discuss the response to the outbreak.

As bad as this sounds, it’s not terrible. Actually it’s not even the worst the market has dropped.

It may be the largest point drop but because the economy is doing so well nowadays it has grown to such a level that a small percentage equates to more points.

Actually in 2008 when Dow was only in the 8000-9000 range it closed at 8,577.91 resulting in a -733.08 loss. That percentage of loss equaled 7.87%. This compared to Monday’s loss of 7.79% was worse.

Compare that to the single worst percentage loss in 1987 of 22.61% and that number doesn’t look so bad.

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