Did the “biggest drop in the DOW Stock Market Ever” occur during the Biden administration? No, that’s not true: A professor of finance at Ivey Business School said the worst day for the Dow Jones Industrial Average (DJIA) was October 19, 1987. A finance professor at the School of Management at the University at Buffalo told Lead Stories, “the recent drop would not qualify as the largest.”
The claim appeared in a Facebook post on May 18, 2022. It read:
Highest Gas/Food Prices Ever. Biggest Drop in the DOW Stock Market Ever. For God Sake Biden. Everything You Touch Turns to Shit!
This post inaccurately refers to the DJIA as the “DOW Stock market.” The DJIA is a “price-weighted index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the Nasdaq,” the National Association of Securities Dealers Automated Quotations.
The Dow did drop 3.57 percent, or 1,164 points on May 18, 2022, its biggest plunge since 2020.
In a May 19, 2022, email, Veljko Fotak, a finance professor at the University at Buffalo, told Lead Stories:
First, the statement does not specify the time frame of a drop. Second, it does not specify whether we are talking about absolute or percent losses. However, I do not see any combination of metrics or timeframes that would make that statement correct.
I think most people looking at that statement would implicitly assume we are talking about daily losses.
In percentage terms, the Dow lost just over 3% on 5/19. That is far from the worst daily loss ever. In fact, it does not make it into the top 20 worst daily losses:
https://www.spglobal.com/spdji/en/landing/topic/djia-125-bests-worsts/
Fact Check Rating: FALSE
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