The Dow Jones Industrial Average closed down 1,175.21 points overnight losing 4.6% of its value in one-day of trading. That is the single worst day in terms of points but is it the worst day ever?
The simple answer is NO. In fact it doesn’t even rate in the top 20!
Here are a couple of charts to prove that point.
In terms of points the Dow Jones Industrial Average did have its worst day on record. The previous record was a loss of 777.68 points on the 29th September 2008 at the height of the Global Recession.
Here is a look at the top-20 worst losses as a percentage which is the more accurate reflection of yesterday’s trading day in the United States.
In terms of percentage the Dow Jones Industrial Average did not have its worst day ever. In fact, yesterday’s trading losses do not even rate in the top 20 worst days on record.
Black Monday was the worst day on record. Here is a reminder of what that headline looks like. Via the Australian Broadcasting Commission. No, this wasn’t the worst day on the Dow Jones — we’ve seen worse. Excerpt:
October 19, 1987
Known as Black Monday in America, this was the day that 22.61 per cent was lost from the Dow Jones. This was followed by Black Tuesday in Australia, when the ASX plunged a massive 25 per cent in response.
Photo: Front page of the Sydney Morning Herald, 21st October 1987, the day after the stock market crash via the Australian Broadcasting Commission.
Big technical stock exchange losses make for great headlines. The Dow Jones Industrial Average had a bad day and the Australian Stock Exchange is following that lead in response but it’s not the worst day ever.
Not even close.