Was covid-19 the reason for the 2020 stock market crash?

One of the biggest stock market falls in history occurred in March 2020.

Stock price crashes are extremely volatile. The stock market crash in 2020 was completely unexpected. The crash was foreseen in the beginning of the COVID-19 recession. Global unemployment was at its lowest during the recession, while quality of life was generally improving. Economic shutdowns occurred all over the world because of the pandemic; panic, buying and supply disruptions exacerbated the market. The panicked selling of stocks and shares resulted in the plummeting of prices in the market. The stock market shock came a day after the World Health Organization declared the covid-19 outbreak as a pandemic. While the impact of coronavirus across the globe has been widespread, after the Covid-19 outbreak was declared as a pandemic, it had resulted in increased nervousness among capitalists. Pandemic disrupted not only the supply chain around the world but also the travel stocks. COVID-19 represents a revenue shock for the vast majority of industries that remain closed during the quarantine period. According to this viewpoint, the March 2020 stock market crash did not occur due to weak economic fundamentals. Nonetheless, firms revise their earnings forecasts downward due to subdued consumer spending. As a result, the market reassesses the value of firms, resulting in a significant drop in stock prices.The crash of stock market in March 2020 marked one of the biggest stock market crashes in history. It was because of the COVID-19 pandemic and governments dramatic response.During this, stocks in the healthcare, food, natural gas and software sectors generated unusually high returns, while companies operating in the crude oil, real estate sectors , entertainment and hospitality fell, losing more than 70% of their market.

One other concern is the capability of creating nations to handle this well being disaster and financial system recession as their financial system is very dependent on the importation, tourism, and oil value. The problem is that this coverage can only be maintained for a short period of time and never in the long run. As a result, if there is more uncertainty on the planet during this pandemic period, the financial system will be able to withstand it longer, and we may see a second global recession and stock market crash. Another concern is developing countries' ability to deal with the health crisis and economic downturn, as their economies are heavily reliant on imports, tourism, and oil prices. Overall, it is expected that all of the countries will experience a significant increase in financial system digitalization.

- Moineesh