Black Monday 1987: The Day the Stock Market Crashed 22% in One Day
Black Monday (1987) Stock Market Crash: Introduction On Monday, October 19, 1987, global financial markets experienced one of the most dramatic and sudden collapses in modern history. Known as Black Monday , the crash saw the Dow Jones Industrial Average fall 508 points—approximately 22.6%—in a single trading session. This remains the largest one‑day percentage drop in the history of the U.S. stock market. The event sent shockwaves across continents, wiping out an estimated $1.7 trillion in global market value within hours. Unlike earlier financial crises such as the Great Depression of 1929, the 1987 crash did not trigger widespread bank failures or a prolonged economic downturn. However, its speed, magnitude, and global contagion exposed deep structural vulnerabilities in financial markets, particularly related to computerized trading, liquidity, and market coordination. This article provides a comprehensive analysis of Black Monday, including the macroeconomic environmen...