Jun 12, 2020 - Economy

The stock market saw its worst one-day decline since March

Dion Rabouin

Traders work on the floor of the New York Stock Exchange — Photo: Spencer Platt/Getty Images

The Dow fell 1,861 points Thursday, the fourth worst one-day point drop on record, and the S&P 500 and the Nasdaq sank 5.9% and 5.3%, respectively. It was the worst one-day decline for the major averages since March 16.

Why it happened: Various media reports have pointed to an increase in COVID-19 cases and deaths (which had been happening for at least a week) and the Fed's dour economic outlook at its June policy meeting (which was little changed from its dour economic outlook in April).

But no one really knows.

Why it matters: It could mark the end of a rally that has seen the S&P rise more than 40% in the best 50-day stretch in history and the Nasdaq hit an all-time high above 10,000 points.

Or it could not.

The big picture: It was just one day.

Retail traders who have signed up in droves over the past three months may be getting their first taste of a big selloff, but they have proven unafraid of volatility.
Institutional asset managers, on the other hand, have not shown the same conviction and were just starting to dip their toes back into the stock market.

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The stock market saw its worst one-day decline since March

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