The main trading day of the 1987 global stock-market crash was nicknamed Black Monday.
Black Monday occurred on October 19, 1987. Stock markets around the world fell sharply, beginning in some Asia-Pacific markets before reaching Europe and North America. The Dow Jones Industrial Average dropped 508 points, then the largest one-day point decline in its history, while its percentage loss was about 22.6 percent.
Several factors contributed to the panic, including high valuations, rising interest rates, trade tensions, and computerized portfolio-insurance selling. The crash also exposed weaknesses in market plumbing and coordination between exchanges. Unlike the 1929 crash, the 1987 collapse did not lead to a decade-long depression.
Central banks and regulators responded with liquidity support and reforms. The United States later introduced market-wide circuit breakers designed to pause trading during extreme declines. “Black Monday” can also describe other market collapses, so the year is important when identifying this event.