October 19, 1987, is known as Black Monday, when the Dow Jones Industrial Average fell 22.6% in one day.
The 1987 crash was a sudden worldwide collapse in equity prices. On October 19, the Dow Jones Industrial Average dropped 508 points, or 22.6%, its largest one-day percentage decline in the index’s history. Major markets in Europe, Asia, and elsewhere also suffered steep falls.
Analysts have identified several contributing factors, including high share valuations, concerns about interest rates and trade deficits, and the rapid growth of computerized portfolio insurance and program trading. No single explanation accounts for every feature of the crash.
Black Monday is distinct from Black Tuesday, the name commonly associated with October 29, 1929, during the Wall Street Crash. It is also different from Black Thursday, October 24, 1929. After the 1987 collapse, exchanges and regulators introduced or strengthened circuit breakers designed to slow trading during extreme market moves.