What name was given to the sharp U.S. market collapse on October 19, 1987?

The sharp U.S. market collapse on October 19, 1987, was called Black Monday.

On that day, the Dow Jones Industrial Average lost 508 points, equivalent to 22.6 percent. It was the largest one-day percentage decline in the Dow's history. The fall followed major market losses in Asia and was followed by severe declines in Europe.

Researchers have identified several contributing pressures, including high share valuations, concerns about economic conditions, rising interest rates, and program trading. Computerized trading systems could execute large orders rapidly, adding to the selling pressure, although no single explanation accounts for the entire event.

The name can be confused with Black Monday in other financial contexts, including the 1962 U.S. market decline. In the standard history of global stock-market crashes, however, “Black Monday” usually means October 19, 1987. The episode led to new market-wide trading halts.