Black Monday was the 1987 global market crash, beginning with the Dow Jones Industrial Average’s record one-day percentage fall.
On October 19, 1987, the Dow dropped 22.6 percent, the largest one-day percentage decline in its history. Stock markets in other countries also fell sharply, making the event international rather than limited to the United States. Concerns included high valuations, trade tensions, rising interest rates, and the effects of computerized trading and portfolio insurance.
Unlike the 1929 crash, Black Monday did not lead to a decade-long depression. Central banks supplied liquidity, and the U.S. Federal Reserve said it would serve as a source of liquidity to support the financial system. Markets eventually stabilized, although the crash changed how regulators and exchanges handled extreme volatility.
Black Monday is sometimes confused with Black Monday in 1929, October 28. The 1987 event specifically refers to October 19, while the 1929 date preceded Black Tuesday.