The year 2020 has been the worst financial year since the 2008 recession, with stock markets around the world taking a major hit. The coronavirus pandemic has made it even worse, with the S&P 500 and Dow Jones Industrial Average both falling more than 20% from their all–time highs in February.
The current global economic crisis is the result of a combination of factors, including the coronavirus pandemic, trade wars, and political uncertainty. The pandemic has had a particularly devastating effect on the stock markets, as businesses have had to close, and consumer spending has drastically decreased. This has caused a significant drop in corporate profits, leading to a decrease in the value of stocks.
The trade war between the United States and China has led to a decrease in global trade, resulting in a decrease in economic activity. Political uncertainty, such as Brexit and the U.S. presidential election, has also caused a decrease in investor confidence. This has caused investors to be more cautious with their investments and has resulted in a decrease in stock prices.
The effects of these factors have been felt around the world, with stock markets in Europe, Asia, and the United States all having their worst year since the 2008 recession. The S&P 500 declined by 20.3%, the Dow Jones Industrial Average by 22.3%, and the Nasdaq Composite by 25.2%. In Europe, the FTSE 100 fell by 24.1%, the German DAX by 27.9%, and the French CAC 40 by 29.7%. In Asia, the Nikkei 225 declined by 18.6%, the Hang Seng by 24.2%, and the Shanghai Composite by 32.7%.
The worst–hit sector was the technology sector, with the tech–heavy Nasdaq Composite falling by over 25%. This is due to the fact that tech stocks have been among the hardest hit by the pandemic, with many companies having to close their businesses or reduce their operations due to the economic downturn.
The energy sector was also hit hard, with the S&P 500 Energy sector index falling by 34.6%. This is due to the decrease in the global need for oil and gas, as well as the drop in oil prices due to the pandemic.
The worst–performing sector of the year was the financial sector, with the S&P 500 Financials sector index declining by 43%. This is because of the fact that banks are facing a decrease in loan demand and an increase in bad loans, as well as the fact that many banks have been hit by the decrease in interest rates.
2020 has been the worst financial year since 2008, with the major stock indices around the world falling significantly. The coronavirus pandemic, trade wars, and political uncertainty have all contributed to the decline in stock prices, with the technology and energy sectors being the hardest hit.
The financial sector has also seen a significant decline due to the decrease in loan demand and an increase in bad loans. This has resulted in a decrease in investor confidence that has led to a decrease in stock prices. It remains to be seen how long the current economic crisis will last, but it is clear that 2020 has been a difficult year for stock markets around the world.