THE IMPACT OF THE CORONA VIRUS ON THE STOCK MARKETS

 by redlily

  

“Stock markets around the world are tumbling.” (Smith)
The stock market is one of the most vital components of a country’s economy. It is a part of the backbone of trading and commerce. In 2019, a disease that the public has now come to know as the Corona Virus Disease 2019, or COVID-19, posed a threat not only to the world’s health but also to the world’s economy. COVID-19 is the major factor that brought about the Stock Market crash of 2020.
 

On March 11, the World Health Organization (WHO) declared that COVID-19 is a pandemic that has the danger of becoming globally widespread. This pandemic is an obstacle to the continued success of the stock market. On February 12, 2020, the DOW Jones, NASDAQ, and S&P 500 finished at record highs. However, just twelve days later, when the number of COVID positive cases outside of China started increasing, stock markets worldwide would experience “the largest one-week declines since the 2008 financial crisis.”.
 

Despite the stock market’s perceived instability in the months leading up to 2020, it’s clear to see that the Coronavirus pandemic is the major cause of the collapse of the global stock market. The stock market has taken a massive hit because of the pandemic and continues to be affected with no perceived recovery shortly soon. Despite the stock market rally towards the end of May, spurred on by the news of a vaccine and economic recovery, economists see this as the small rise before the continued fall.