The worldwide stock-market crash that began on October 19, 1987, was called Black Monday. The name refers to the date when markets around the world suffered extraordinary losses.
The Dow Jones Industrial Average fell 22.6% that day, the largest one-day percentage decline in its history. The collapse was not limited to the United States: major markets in Europe, Asia, and elsewhere also dropped sharply. Australia’s market had already fallen on October 16, while Hong Kong’s exchange experienced severe losses before the U.S. session.
Several explanations have been studied, including overvalued shares, rising interest rates, trade tensions, portfolio insurance, and computerized trading strategies. No single cause fully explains the international speed and scale of the sell-off.
Black Monday is distinct from the Black Monday of October 28, 1929, and from other market days that received the same nickname. Despite the dramatic fall, the 1987 crash did not produce a depression comparable to the 1930s. Central banks and market authorities responded with liquidity support and trading reforms, including circuit breakers designed to slow future panic selling.