The COVID-19 Crash in the US Stock Market

20 Pages Posted: 1 Jul 2020

See all articles by William T. Ziemba

William T. Ziemba

University of British Columbia (UBC) - Sauder School of Business; Systemic Risk Centre - LSE

Date Written: June 21, 2020


This paper studies the US equity market during the COVID-19 period in the first half of 2020. There is a record rise, then a record fall in prices and then a record recovery. Throughout the period there was extreme volatility and much short term momentum with fear and greed alternating. The VIX index signalled the market direction. The roles of the 10 year government bond, the S&P500, Apple Computer stock are studied as well as the massive Fed and government stimuli which fuelled the rebound, despite extremely weak fundamentals.

Keywords: COVID-19 response, stock market crash, stock market rally, Fed stimulus, government stimulus, effect of the volatility index, bond and stock prices.

JEL Classification: B26, C18, E43, G01, G12, G18, N22, Y1

Suggested Citation

Ziemba, William T., The COVID-19 Crash in the US Stock Market (June 21, 2020). Available at SSRN: or

William T. Ziemba (Contact Author)

University of British Columbia (UBC) - Sauder School of Business ( email )

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Vancouver, BC V6T 1Z2
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Systemic Risk Centre - LSE ( email )

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