Black Monday set the record for the largest one-day percentage fall in the Dow Jones Industrial Average.
On October 19, 1987, the Dow Jones Industrial Average dropped 22.6%, a decline that remains the benchmark’s largest single-day percentage loss. The fall followed sharp declines in several overseas markets and spread rapidly through international financial centers.
The crash reflected a combination of concerns, including high valuations, interest-rate expectations, currency and trade disputes, and heavy use of automated trading strategies. Portfolio insurance programs were designed to reduce losses, but their sell orders could add downward pressure when prices moved sharply.
The name can cause confusion because financial history includes several “Black” market days. Black Tuesday usually refers to October 29, 1929, while Black Thursday refers to October 24, 1929. Black Monday is specifically associated with the 1987 event, although the term has also been reused for later market declines.