What was the October 1989 U.S. market plunge caused partly by the failure of the United Airlines buyout called?

The October 1989 U.S. market plunge was called the Friday the 13th mini-crash.

On Friday, October 13, 1989, the Dow Jones Industrial Average fell 190.58 points, or about 6.9%. The immediate trigger was the collapse of a proposed leveraged buyout of United Airlines’ parent company. Investors also worried that the market, which had risen strongly earlier in the year, was vulnerable to a sudden reversal.

The decline came only two years after Black Monday, the global crash of October 19, 1987. Despite the dramatic one-day fall, the 1989 episode did not produce the same worldwide financial disruption. Markets stabilized relatively quickly, although the event reinforced concerns about leveraged acquisitions and computerized trading.

The crash’s nickname can cause confusion because “Friday the 13th” describes the date rather than a separate economic mechanism. It is also known as the 1989 mini-crash. The failed United Airlines transaction involved UAL Corporation, the airline’s parent company.