The October 27, 1997 market crash that affected stock exchanges worldwide was nicknamed the Mini-crash.
The decline occurred during the wider Asian financial crisis, which had begun with pressure on Thailand’s baht in July. Investors became increasingly concerned about contagion, corporate debt, banking weaknesses, and the sustainability of exchange-rate arrangements across Asia. Major markets outside Asia also fell.
The Dow Jones Industrial Average dropped 554.26 points, or 7.18%, on October 27. The fall triggered a temporary trading halt under the New York Stock Exchange’s newly used circuit-breaker system. The next day, the Dow recovered most of the loss.
The episode is called a mini-crash because it was severe but brief compared with the 1929 crash or the 1987 Black Monday collapse. It is also sometimes discussed as part of the 1997 global stock-market downturn, rather than as an entirely separate financial crisis.