The October 27, 1997 global stock-market plunge was nicknamed the Mini-crash.
On October 27, 1997, major stock markets fell sharply amid concerns about the Asian financial crisis and its possible effects on global companies and banks. The Dow Jones Industrial Average dropped 554.26 points, or 7.18%, in one session.
The fall triggered market-wide trading restrictions known as circuit breakers. These rules were designed to pause trading during extreme declines and give investors time to assess information. The New York Stock Exchange halted trading briefly when the decline reached the relevant threshold.
The event is called a mini-crash because it was severe but short-lived compared with the 1987 crash and the prolonged collapse after 1929. It is also sometimes overlooked because it occurred during the larger Asian financial crisis. In the following year, further market stress helped expose vulnerabilities at Long-Term Capital Management, a highly leveraged hedge fund that was rescued in a private-sector agreement arranged by the Federal Reserve.