U.S. stocks sank, bulging the Dow Jones Industrial Average’s loss in the quarter to a level not seen since 1987 as the pandemic almost certainly plunged the American economy into recession.

The blue-chip index tumbled 23 per cent in the three months, closing the period with a 1.9 per cent drop. The S&P 500 fared little better, even after a furious, weeklong 17 per cent rally that halted Tuesday. The Nasdaq 100 Index fell least among major indexes, as dip-buyers targeted the cash-rich tech megacaps that make up its core.

There was almost nowhere to hide for Dow investors, as all but one of the 30 members ended lower for the year. Boeing plunged 54 per cent, while Chevron and Exxon sank at least 39 per cent after oil suffered its worst quarterly beatdown on record. Microsoft fared best, ending higher by 0.01 per cent.

Risk assets around the world tumbled in the period as governments instituted unprecedented shutdowns in large swaths of the global economy to combat the spread of the deadly coronavirus. Massive government spending and monetary stimulus lifted U.S. stocks from a rout that reached 33 per cent, but the hit to GDP is shaping up to be monumental, with Goldman Sachs now forecasting a 34 per cent contraction in the second quarter before a sharp rebound.

As March ends, here are some of the major quartlery moves:

• The record bull market in U.S. stocks turned into a bear market on March 12, 11 years and three days after the last one ended.
• Bloomberg’s U.S. dollar index surged six per cent, most since 2016, even after tumbling more than three per cent since March 23.
• The Cboe Volatility Index averaged 57.1 in March, triple the mean in the prior decade.
• European shares plunged more than 20 per cent for the worst three months since 2002. Spain lost 30 per cent.
• West Texas oil lost 65 per cent, the worst quarter on record.
• The 10-year Treasury yield hit 1.94 per cent on Jan. 20. It fell to 0.31 per cent by March 9 and is just over 0.6 per cent now.
• Gold topped US$1,700 in early March before plunging US$200 an ounce. It’s on track for a sixth quarterly gain.
• China’s Shanghai Composite lost 10 per cent, while Tokyo’s Topix fell almost 20 per cent in its worst three months since 2008.
• Copper fell 23 per cent and nickel lost 19 per cent, both most since 2011.
• The pound fell more than six per cent, while the yen was virtually flat versus the U.S. dollar.
• South Africa’s rand had its worst quarter since 2001 and Mexico’s peso fell the most since 2008.

On Tuesday, investors focused on signs that Congress could deliver a fourth round of stimulus as the virus spreads deeper in the country. U.S. President Donald Trump is reportedly seeking a US$2 trillion infrastructure package. Treasuries edged higher, while the U.S. dollar fell and crude pushed back above US$20 a barrel.

Investors are at a crossroads, questioning whether extraordinary stimulus by countries and central banks can counter further retrenchment of firms and consumers as the outbreak spreads.

New York City, which is emerging as the new epicenter of the pandemic, reported a 16 per cent increase in deaths in six hours. Italy and the Netherlands are considering extending lockdowns, and Spain’s 849 deaths were the most in one day for the country.

“The recent market movements do reflect efforts to factor in what has happened on the pandemic control side of things and the stimulus measures,” Cameron Brandt, director of research at EPFR, said by phone. “It’s almost certain that we’ll continue to see volatility.”

In Europe, the Stoxx 600 rose and a measure of corporate-credit stress eased. Equities were mixed in Asia, where China had stronger-than-anticipated manufacturing data. The U.S. dollar rose versus the euro.

In China, the official purchasing managers’ index rose to 52.0 this month. That’s up from a record low of 35.7 in February and above the 50 mark which signals improving conditions. Still, the country’s bureau of statistics cautioned that the single-month data didn’t necessarily mean that economy has returned to normal level amid continuing coronavirus concerns.

These are the main moves in markets:

Stocks

• The S&P 500 Index fell 1.7 per cent as of 3:20 p.m. New York time.
• The Nasdaq 100 Index dropped 0.2 per cent.
• The Stoxx Europe 600 Index added 1.6 per cent.
• The MSCI Asia Pacific Index gained 0.4 per cent.

Currencies

• The Bloomberg U.S. Dollar Spot Index fell 0.1 per cent.
• The euro declined 0.3 per cent to US$1.1013.
• The British pound was little changed at US$1.2414.
• The Japanese yen gained 0.1 per cent to 107.83 per U.S. dollar.

Bonds

• The yield on 10-year Treasuries declined three basis points to 0.69 per cent.
• Germany’s 10-year yield climbed by two basis points to -0.46 per cent.

Commodities

• Gold sank 2.4 per cent to US$1,604.30 an ounce.
• West Texas Intermediate crude increased 3.1 to US$20.75 a barrel.