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Global stock markets plunge

by Lynde Langdon
Posted 2/28/20, 10:22 am

The Dow Jones Industrial Average had its largest single-day drop in history on Thursday. Fears about the effect of the coronavirus outbreak on businesses have pulled the rug out from under global markets, which were performing better than ever before the disease began to spread. The S&P 500 index is down 12 percent from its all-time high a week ago, and stock markets in China, India, Japan, and South Korea are falling, as well.

How bad is it? Some economic experts said the setbacks represent an overdue market correction, though this one hit faster and harder than expected. U.S. markets survived a correction as recently as 2018. If stock values drop by more than 20 percent, it could signal a recession.

Dig deeper: Read my obituary of Paul Volcker, the 1980s Federal Reserve chairman who showed future generations how to keep the economy stable.

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Lynde Langdon

Lynde is a WORLD Digital's managing editor. She is a graduate of World Journalism Institute, the Missouri School of Journalism, and the University of Missouri-St. Louis. Lynde resides with her family in Wichita, Kansas. Follow Lynde on Twitter @lmlangdon.

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  • PAMom
    Posted: Fri, 02/28/2020 02:35 pm

    I think that too many people are panicking because the media coverage of this COVID-19 is relentless. As Christians, we need to remember that God is in complete control of everything, including global economics. I think that if there was less media coverage on this new disease, there would be less panicking on the world's stock markets.

  • OldMike
    Posted: Thu, 03/05/2020 01:15 am

    I think if the stock market were to drop by 20%, I would mortgage my paid-for home to the hilt and buy as much of that discounted stock as possible.  The market has zigs and zags, but the overall trend is always up.  People who watch the daily zigs and call their broker in a panic to tell him, "SELL!" are fools.