Worst day for Wall Street since 1987 crash as Covid-19 fears escalate

NEW YORK – Intensifying coronavirus fears battered Wall Street on Thursday with a historic nosedive in its worst session since the 1987 market crash.

The Dow slumped more than 2,300 points, or about 10 percent, at the close, notching its biggest one-day percentage drop since the 1987 Black Monday market crash, when it collapsed by more than 22 percent.

The S&P 500 cratered 9.5 percent to 2,480.64, also its worst day since 1987. The tech-heavy Nasdaq Composite shed 9.4 percent to 7,201.80. Both indexes joined the Dow in entering a bear market territory, ending Wall Street’s record-setting bull-market run of nearly 11 years. A bear market marks a 20 percent decline from recent record highs.

Thursday’s market sell-off was broad. All the 11 primary S&P 500 sectors finished significantly lower, with energy down 12.3 percent, representing the worst-performing group.

The Cboe Volatility Index, widely considered as the best fear gauge in the stock market, spiked 40.02 percent to 75.47 on Thursday, hitting its highest level since the 2008 financial crisis.