The 1987 global stock-market crash reached the U.S. Dow Jones record known as Black Monday on October 19, 1987.
The Dow Jones Industrial Average fell 508 points, or 22.6 percent, in one session. That remains the largest one-day percentage decline in the index’s history. Markets in Hong Kong, Europe, Australia, and other regions also suffered severe losses, making the event global rather than solely American.
Several forces contributed, including rising interest rates, worries about the U.S. dollar and trade deficits, and computerized portfolio-insurance strategies. Those automated selling programs could intensify downward momentum when prices dropped. The crash did not develop into a prolonged economic depression, and the U.S. economy continued to expand afterward.
Black Monday is sometimes confused with the 1929 U.S. crash dates, especially Black Tuesday. The 1987 event is distinguished by its date and by the extraordinary percentage fall in the Dow during a single trading session.