Which 1987 event caused stock markets worldwide to plunge on October 19, 1987?

Black Monday caused stock markets worldwide to plunge on October 19, 1987.

The term refers to a global market crash rather than a single exchange’s isolated failure. Hong Kong markets fell first in the sequence, and selling spread westward through Europe and North America. The Dow Jones Industrial Average lost 22.6% in one session, while several other major markets suffered even larger percentage declines.

Researchers have identified several contributing factors, including rising interest rates, trade and currency tensions, investor anxiety, and computerized trading strategies. Portfolio insurance programs could amplify a decline by placing more sell orders as prices dropped. No single explanation accounts for every market’s movement, and the crash did not produce a depression comparable to the 1930s. In response, exchanges and regulators developed coordinated trading halts and other protections. Black Monday is also used for later crashes, so the date or year is essential to distinguish the 1987 event.