Day Traders Diary

3/16/20

The markets sold off sharply once again, suffering their worst day since the "Black Monday" market crash in 1987, even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.

The Dow Jones Industrial Average closed down 2,997 points or 12.9%, at 20,188. The 30-stock Dow was briefly down more than 3,000 points in the final minutes of trading. The S&P 500 dropped 12% to 2,386., hitting its lowest level since December 2018 while the Nasdaq Composite closed 12.3% lower at 6,904 in its worst day ever.

The major averages fell to their lows into the close after President Donald Trump said the worst of the outbreak could last until August. He also told reporters the U.S. "may be" heading into a recession.

Monday's losses put the Dow down 31.7% from its all-time high and the S&P 500 and Nasdaq more than 29% below their records last month. The Dow fell to its lowest point since 2017.

The Dow's drop was the worst decline since its "Black Monday" crash three decades ago when it fell more than 22%. The drop surpassed its 9.99% tumble last Thursday.