What was the worst trading day in 2020?

Asked by: Rosalinda Reichel  |  Last update: September 30, 2026
Score: 4.5/5 (21 votes)

The worst trading day in 2020 was March 16, 2020, when the Dow Jones Industrial Average (DJIA) plummeted 2,997.10 points ( -12.93 % − 1 2 . 9 3 % ). This "Black Monday II" was driven by panic over the COVID-19 pandemic shutdown and was the worst drop since 1987. Other severe drops occurred on March 12 ( -10 % − 1 0 % ) and March 9 ( -7.79 % − 7 . 7 9 % ).

What was the worst stock day in 2020?

During the crash, there were multiple severe daily drops in the global stock market, the largest drop was on 16 March, nicknamed 'Black Monday II' of 12–13% in most global markets.

What has been the worst day in the stock market?

Some sources (including the file Highlights/Lowlights of The Dow on the Dow Jones website) show a loss of −24.39% (from 71.42 to 54.00) on December 12, 1914, placing that day atop the list of largest percentage losses.

Was Black Monday or Black Tuesday worse?

Black Monday (1987) was significantly worse in terms of single-day percentage loss, with the Dow dropping over 22%, making it the largest one-day percentage drop in U.S. stock market history, while Black Tuesday (1929) marked the definitive collapse that ushered in the Great Depression, with severe losses (around 12%) over several days, leading to deeper, prolonged economic devastation, though Black Monday recovered faster.

What stock blew up in 2020?

Tesla, Inc.

Although the company is now profitable and is joining the S&P 500, the run-up of over 600% in Tesla's share price this year seems extreme given that it still makes up such a tiny fraction of the vehicle market.

DOW tumbles 1,160 points, worst trading day since June 2020

41 related questions found

What is a dead cat bounce?

This colorful term is used to describe a technical phenomenon that occurs during a significant market downtrend. After weeks or even months of grinding lower, asset prices appear suddenly and inexplicably to change direction and spring back to life.

Why will the market fall on 7th April 2025?

The first of Trump's new tariffs, a 10% minimum tariff on nearly all imports to the US, went into effect on Saturday, April 5. After markets opened on April 7, stocks plunged further. The three-day losses became the worst since Black Monday.

What is the 3-5-7 rule in stocks?

The 3-5-7 rule in stock trading is a risk management strategy: risk no more than 3% of capital on a single trade, keep total open position risk under 5%, and aim for a minimum 7% profit target or 7:1 reward-to-risk ratio, ensuring capital preservation and disciplined growth by setting clear limits and avoiding emotional decisions. 

Which days to avoid trading?

Saturdays and Sundays tend to be the least favourable days for trading forex. Most traders tend to avoid trading forex during holidays and around major news events.

Who owns 88% of the stock market?

A 2019 study by Harvard Business Review found either Vanguard, BlackRock or State Street is the largest listed owner of 88% of S&P 500 companies. There is a perception that a few select companies own a vast majority of the stock market.

What is the 90% rule in trading?

The "90-90-90 rule" in trading is a harsh reality check stating that 90% of new traders lose 90% of their money within the first 90 days, highlighting the high failure rate due to emotional decisions, poor risk management, and lack of education/strategy. It serves as a cautionary tale, emphasizing that success requires discipline, a solid trading plan, continuous learning, and strict risk control (like risking only 1-2% per trade) to avoid the common pitfalls that wipe out most beginners. 

What is the 10 am rule in stocks?

The "10 a.m. rule" in stock trading is a guideline suggesting traders wait until 10 a.m. (30 minutes after the market opens at 9:30 a.m. ET) to make significant trades, allowing the initial high volatility and price discovery from overnight news to settle, revealing a clearer market direction for the day. This strategy aims to avoid panic-driven decisions in the chaotic opening minutes, leading to potentially better, more informed trades after the market stabilizes.
 

Was 2020 a good year for stocks?

The capital markets shrugged off torrents of bad news during 2020, with the S&P 500 returning an impressive 18.4% for the full year, bonds 7.5% and a 60/40 portfolio 15.8% (14.0% without rebalancing).

Will 2026 be a bear market?

While industry insiders are generally cautious, few expect a crash. Morgan Stanley notes “continued equity gains in 2026” with modest growth, as a lot of good news is already priced in. Fidelity's 2026 outlook is that it “could be another positive year” for the market — but investors shouldn't ignore risks.

What is the No. 1 rule of trading?

10 Best Rules For Successful Trading

  • Introduction. ...
  • Rule 1: Always Use a Trading Plan. ...
  • Rule 2: Treat Trading Like a Business. ...
  • Rule 3: Use Technology to Your Advantage. ...
  • Rule 4: Protect Your Trading Capital. ...
  • Rule 5: Become a Student of the Markets. ...
  • Rule 6: Risk Only What You Can Afford to Lose.

Is a recession coming in 2026?

Most economists don't expect the U.S. economy will enter a recession in 2026. J.P. Morgan (JPM +1.05%) Global Research projects the likelihood of a recession this year at only 35%. The Federal Reserve Bank of New York's probability of a recession by November 2026 based on Treasury spreads is even lower.

What does DCB mean in trading?

In trading, dead cat bounce refers to a temporary recovery that happens after a long decline which is usually followed by a downtrend. It can be defined as the chart phenomenon that happens during bearish moves.

What triggered the 1987 Black Monday stock market crash?

Experts attributed the crash primarily to automated trading strategies, particularly program trading techniques like portfolio insurance and index arbitrage, which exacerbated the downward trend of stock prices. These automated systems triggered automatic sell orders, worsening the decline.