Stock Market Plunge: Reports of Slowing American Economy Send Stocks Tumbling
Record Declines in Asia and Europe
Stocks around the world plummeted on Monday after markets were rattled by reports of a slowing American economy. In Asia, the Nikkei 225 index in Tokyo dropped 4.5%, and the Shanghai Composite Index in China fell 3.7%. In Europe, the FTSE 100 Index in London lost 3.0%, and the CAC 40 Index in Paris fell 2.8%.
Deja Vu for Market Watcher
Yardeni, an economist who has closely tracked markets for half a century, said the sudden collapse in markets brought back memories of some of the most significant stock market crashes in US history, including the crash in 1929 that preceded the Great Depression.
Worst Ever?
But Yardeni said that the current decline was not even close to the worst US stock market crash ever. That distinction belongs to Black Monday on October 19, 1987, when the Dow Jones Industrial Average fell 22.6% in a single session.
What is a Stock Market Crash?
A stock market crash is a sudden, dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth.
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