how much did the stock market crash during covid

Overview

This article addresses the question: how much did the stock market crash during covid? In clear, data-driven terms we summarize index peak-to-trough losses, key dates, single-day volatility, sector and market-cap effects, policy responses that aided stabilization, and how markets recovered. Read on to get verifiable figures (dates and sources noted) and practical context for the magnitude, duration, and market consequences of the March 2020 crash.

As of March 23, 2020, according to ScienceDirect’s analysis of U.S. equity indexes, many major U.S. equity indexes lost roughly one third of their value from the February 19, 2020 peaks to the March 23, 2020 trough. This article repeatedly answers how much did the stock market crash during covid using consistent windows, documented single-day moves, sector- and country-level patterns, and peer-reviewed interpretations.

Background

After a prolonged bull market since 2009, global equities entered 2020 with stretched valuations in some sectors, low interest rates, and heightened sensitivity to macro shocks. Early reports of a novel coronavirus in late 2019 and accelerating case counts in early 2020 created uncertainty about global economic activity. As international travel restrictions and social-distancing measures proliferated in February and March 2020, expectations of a sharp contraction in demand and disruption to supply chains triggered extreme market volatility.

Why this matters: the speed and depth of the 2020 crash show how quickly an exogenous health shock can propagate into financial prices, and answering how much did the stock market crash during covid helps investors and policy makers calibrate shocks and responses.

Timeline (key dates and events)

• Feb 19, 2020 — U.S. equity indexes (notably the S&P 500) recorded their most recent all-time or cycle peaks prior to the crash. As of Feb 19, 2020, markets were at the pre-crash reference level used in many peak-to-trough calculations.

• Late February 2020 — Stock indices began to decline as COVID-19 case counts rose outside China, with travel and supply-chain concerns increasing market uncertainty.

• March 9, 2020 — Major global indices posted large losses amid concerns about pandemic escalation and oil-price volatility.

• March 12, 2020 — A large single-day drop occurred in U.S. markets. As of March 12, 2020, multiple press reports (ABC News, Hartford Funds summaries) noted one of the worst single-day losses since the 2008–2009 period.

• March 16, 2020 — Markets experienced one of the largest single-day percentage declines since 1987, with volatility indicators and trading curbs activated in intraday trading. As of March 16, 2020, major media outlets documented extreme intraday swings and record VIX levels.

• March 23, 2020 — Trough for major U.S. equity indexes in the commonly cited window (Feb 19–Mar 23). As of March 23, 2020, ScienceDirect and other analyses report peak-to-trough declines of roughly one third for broad U.S. indices.

• Late March–April 2020 — Aggressive monetary and fiscal responses were announced and implemented in many jurisdictions. Markets began a significant rebound in late March and April 2020.

• Late 2020 — By months later and into Q4 2020, major indices had recovered and, in many cases, surpassed pre-crash highs after policy support, economic reopening expectations, and later vaccine progress.

This timeline frames the key window used in answering how much did the stock market crash during covid.

Magnitude of the crash

Short answer: how much did the stock market crash during covid? Measured from the S&P 500 peak on February 19, 2020 to the trough on March 23, 2020, the S&P 500 declined approximately 33.9%. Broad U.S. measures such as the Wilshire 5000 recorded similar peak-to-trough declines (~34.9%) in the same window. Many other major indices worldwide experienced declines of comparable magnitude during the March 2020 episode.

As of March 23, 2020, according to a ScienceDirect study titled "The ‘COVID’ crash of the 2020 U.S. Stock market," four major U.S. indices lost more than one-third of their value within about five weeks. When answering how much did the stock market crash during covid, it is essential to specify the measurement window: the commonly cited Feb 19–Mar 23 window yields the roughly one-third figure.

Index-level peak-to-trough declines

• S&P 500: ≈ 33.9% decline from Feb 19, 2020 (peak) to Mar 23, 2020 (trough). (As of Mar 23, 2020, ScienceDirect summary and corroborated by Fed/St. Louis Fed notes.)

• Wilshire 5000 (broad U.S. equity market): ≈ 34.9% decline over the same Feb 19–Mar 23 window. (According to ScienceDirect analysis using the same dates.)

• Dow Jones Industrial Average: reported declines in the late-February to mid-March window varied by exact dates used; over comparable windows the Dow fell by roughly 28% from its Feb high to late-March trough in many press summaries. (Forbes and mainstream press coverage provided contemporaneous figures as of March 2020.)

• Small-cap indices (e.g., Russell 2000 proxy behavior): small- and mid-cap stocks often recorded deeper peak-to-trough losses than large-cap indices during the March 2020 episode; some small-cap measures declined more steeply than the S&P 500 during the trough period. (As of late March 2020, St. Louis Fed sector and market-cap breakdowns showed outsized small-cap declines.)

Note on measurement: different sources sometimes report slightly different percentages because of whether they use intraday highs/lows versus close-to-close values, whether they include dividends (price return vs. total return), and the precise peak/trough dates chosen. For consistency, the Feb 19 peak to Mar 23 trough window is used here unless otherwise noted.

Single-day and intraday moves

How much did the stock market crash during covid in one day? Two of the largest single-day percentage losses occurred in March 2020:

• March 12, 2020 — A major single-day decline amid pandemic fears and market liquidity stress. (As reported by ABC News and Hartford Funds, dated March 12, 2020.)

• March 16, 2020 — One of the largest single-day percentage drops since Black Monday (1987). Intraday volatility spiked and the CBOE Volatility Index (VIX) reached multidecade highs. (As covered by Financial Times and Wall Street Journal reporting on March 16, 2020.)

These sudden moves amplified the peak-to-trough decline and contributed to activation of market circuit breakers and widespread uncertainty about valuation and liquidity in late February–March 2020.

Geographic and market breadth

The shock was global. As of March–April 2020, international equity markets broadly recorded steep declines and elevated volatility. Academic analyses (e.g., PubMed / J Public Affairs studies published in 2020–2021) documented simultaneous increases in conditional volatility and "bad-state" probabilities across many countries’ equity markets during March 2020.

Cross-country differences were notable: countries with earlier and larger virus outbreaks or those dependent on tourism and commodity exports tended to show larger equity declines and slower recoveries in the first months of the crisis. However, almost all major developed-market indices experienced severe drawdowns in the Feb–Mar 2020 window.

Sector and market-cap impacts

Answering how much did the stock market crash during covid at the sector level requires disaggregating winners and losers:

• Sectors hit hardest early: energy (compounded by oil price declines in March 2020), travel and leisure, and some financials experienced the deepest contractions in equity value. As of March 2020, major media and Fed regional analyses highlighted outsized losses in energy and travel-related equities.

• Relatively resilient sectors: health care and consumer staples, and in many cases larger technology-related firms, experienced smaller declines or recovered faster as investors rebalanced toward perceived defensive sectors.

• Market-cap differences: small- and mid-cap stocks fell more than large-cap stocks in percentage terms during the peak-to-trough window, reflecting lower liquidity and higher sensitivity to economic shutdowns and credit stress. (St. Louis Fed sector breakdowns and ScienceDirect cross-sectional studies document these patterns as of late March 2020.)

Causes and transmission mechanisms

How much did the stock market crash during covid, and why? The proximate triggers and transmission channels included:

• Health shock: rapid global spread of SARS-CoV-2 and the need for large-scale social distancing and lockdowns, which sharply reduced economic activity.

• Demand shock: abrupt decline in consumption for travel, hospitality, and in-person services.

• Supply shock: interruptions to global supply chains and factory output.

• Oil-price shock: large swings in oil prices in March 2020 exacerbated losses in energy-related equities.

• Market mechanics: forced selling, margin calls, liquidity pressures, and increased risk premia led to widening credit spreads and sharper equity price declines.

Academic studies (ScienceDirect, Finance Research Letters) interpret COVID-19 primarily as an exogenous shock that triggered panic selling and repricing of risk; some papers emphasize preexisting vulnerabilities (valuation stretch, leverage) that amplified the response. As of mid-2020, peer-reviewed analyses highlighted elevated conditional volatility and the cross-sectional dispersion of returns as key features of the crash.

Market structure, volatility and trading halts

• Volatility: The CBOE Volatility Index (VIX) spiked to multidecade highs in March 2020. These spikes signaled extreme uncertainty and high option-implied volatility as markets repriced macro and corporate risk.

• Circuit breakers: Multiple single-day drops and intraday swings in March 2020 triggered exchange circuit breakers designed to pause trading during extreme moves (as widely reported on March 12 and March 16, 2020). Those halts aimed to provide time for liquidity to replenish and for market participants to digest information.

• Liquidity and spreads: Bid-ask spreads widened in many instruments, and certain fixed-income and ETF markets showed transient liquidity stress. Market structure dynamics affected how quickly large orders could be absorbed without further pushing prices down.

These mechanics amplified the realized magnitude of the crash and illustrate why answering how much did the stock market crash during covid means considering both headline index moves and intraday liquidity conditions.

Macroeconomic and financial consequences

The March 2020 crash coincided with a rapid deterioration in macroeconomic indicators:

• Employment: Unemployment surged in many economies after lockdowns, with initial spikes in weekly jobless claims in the U.S. in March–April 2020.

• Output: GDP forecasts plunged in Q2 2020 with deep, near-term contractions in activity; many jurisdictions experienced record quarterly declines in economic output for Q2 2020.

• Credit and corporate finances: Credit spreads widened and corporate financing conditions tightened briefly, with markets and central banks stepping in to supply liquidity and backstop credit.

These real-economy effects reinforce the scale when answering how much did the stock market crash during covid: the equity losses reflected both a present value of earnings shock and higher discount rates stemming from uncertainty.

Policy and central-bank responses

Rapid policy responses played a central role in stabilizing markets and supporting the recovery:

• Monetary policy: Central banks implemented large and swift policy rate cuts, asset purchases (quantitative easing), and liquidity facilities to maintain market functioning. As of late March 2020, major central banks announced extraordinary measures to ensure credit and liquidity provision.

• Fiscal policy: Governments enacted significant fiscal stimulus and income support measures (payroll support, unemployment benefits expansions, direct transfers) to cushion the demand shock.

These policy actions were widely documented in March–April 2020 press coverage and official releases; they contributed materially to the market rebound that began in late March 2020. When assessing how much did the stock market crash during covid, it is equally important to note how policy responses influenced the pace of recovery.

Recovery and subsequent performance

• Immediate rebound: After the March 23, 2020 trough, equity markets entered a substantial rebound. As of April–May 2020, many major indices had recovered a meaningful portion of their losses, buoyed by policy support and reassessment of economic trajectories.

• Full recovery to new highs: By late 2020, many major equity indices had regained their February 2020 highs and reached new highs, despite ongoing economic challenges, reflecting expectations of recovery and later positive vaccine-related developments.

The speed of the recovery—faster than in some prior crises—highlights the role of policy and the heterogeneity in sectoral rebounds (e.g., tech/large-cap strength vs. more protracted stress in travel and energy).

Comparisons with historical crashes

How much did the stock market crash during covid compared to past crashes?

• 1987 (Black Monday): The one-day percentage drop in October 1987 remains remarkable for its single-day magnitude. March 2020 had some single days with very large moves but the cumulative three-to-four-week drawdown in 2020 was driven by a prolonged multi-week selloff.

• 2000–2002 (Dot-com bust) and 2007–2009 (Global Financial Crisis): Those episodes involved longer-duration bear markets and, in the case of 2007–2009, larger cumulative declines in some indices (and deep financial system stress). The 2020 crash was faster and sharper in calendar time but shorter in duration before a robust policy-supported rebound.

• 1929–1932 Great Depression: The economic and social context differs substantially; the 2020 event was driven by an identifiable exogenous health shock and offset by unprecedented modern policy actions.

Each comparison helps put in perspective the magnitude when answering how much did the stock market crash during covid: the March 2020 crash was severe in speed and amplitude over weeks, but the recovery was unusually rapid compared with many prior deep bear markets.

Academic analyses and interpretations

Peer-reviewed and working-paper research after the event focused on several findings:

• Elevated conditional volatility and increased co-movement across asset classes during March 2020.

• Cross-sectional variation showing that firms with greater exposure to social-distancing costs, higher leverage, and weaker liquidity positions experienced larger drawdowns.

• Evidence that COVID-19 functioned as an exogenous shock that precipitated rapid repricing rather than the bursting of a single asset bubble—although valuation stretch in certain sectors amplified losses.

As of mid-2020 and into 2021, ScienceDirect and finance journals published analyses quantifying these features and providing econometric estimates that help explain the magnitude of the crash.

Data and measurement issues

When answering how much did the stock market crash during covid, be mindful of important measurement choices:

• Window selection: Peak-to-trough percentages depend on chosen peak and trough dates (Feb 19–Mar 23 is a commonly used consistent window for U.S. equities).

• Close vs. intraday values: Using intraday highs/lows can show larger drawdowns than close-to-close calculations.

• Index composition: Broad indices (Wilshire 5000) and large-cap indices (S&P 500) can show similar magnitudes but sector weightings affect results.

• Price vs. total return: Total return indices (with dividends reinvested) show modest differences versus price-only indices over short windows.

• Market-cap weighting vs. equal weighting: Equal-weighted indices often recorded larger drawdowns due to heavier small-cap exposure.

Careful reporting that specifies the exact measurement choices is necessary to avoid misinterpretation of how much the stock market crash during covid actually was.

Legacy and lessons

Key takeaways from the March 2020 crash include:

• Speed of shocks: Exogenous non-financial shocks (a pandemic) can produce rapid repricing and market dislocations.

• Policy importance: Liquidity provision and coordinated policy responses were decisive in limiting longer-term financial-market damage.

• Market structure resilience: Circuit breakers and liquidity facilities matter, but the episode exposed stress points in certain market segments.

• Diversification & risk management: Sectoral differences and market-cap effects reinforced the benefits—and limits—of diversification during systemic shocks.

These lessons influence market participants, regulators, and infrastructure design going forward.

Practical, neutral note for readers

If you were searching how much did the stock market crash during covid to assess risk or historical context: the commonly cited, well-documented short answer is that major U.S. indexes fell roughly one third (about 34%) from mid-February to March 23, 2020, with extreme single-day moves during March. That figure is robust across several reputable analyses when using the Feb 19–Mar 23 window.

This article does not offer investment advice. It aims to present verifiable historical facts and interpretations from academic and reputable financial sources.

See also

• 2020 stock market crash (global context)
• COVID-19 recession and economic indicators
• Market circuit breakers and volatility indexes (VIX)

References and source notes

• As of March 23, 2020, ScienceDirect: "The ‘COVID’ crash of the 2020 U.S. Stock market" — peak-to-trough S&P 500 decline ≈ 33.9%; Wilshire 5000 ≈ 34.9% (data window Feb 19–Mar 23, 2020).

• As of March–April 2020, St. Louis Fed: sector-level reporting and summaries of market performance by industry during the COVID shock.

• As of March 12 and March 16, 2020, major press coverage (ABC News, Hartford Funds, Financial Times, Wall Street Journal) documented record single-day losses, circuit-breaker activations, and VIX spikes.

• PubMed / Journal of Public Affairs and Finance Research Letters: academic analyses of returns, volatility, and cross-sectional effects in March 2020 (published 2020–2021), documenting elevated conditional volatility across international markets.

• Wikipedia (2020 stock market crash timeline) — summarized the chronology, major dates, and recovery path (as of late 2020 update).

Notes on verification: percentage figures quoted in this article are based on the frequently used peak (Feb 19, 2020) to trough (Mar 23, 2020) window; other sources that choose different peaks/troughs or intraday extremes may report slightly different numbers.

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