The 1987 market crash linked to turmoil in Hong Kong’s futures market and a five-day global sell-off was Black Monday.
The crash began in Hong Kong on October 19, 1987, then spread westward through international financial markets. The Dow Jones Industrial Average fell 22.6% in a single session, its largest one-day percentage decline. Other major markets also recorded severe losses.
Hong Kong’s futures market had already suffered a major collapse, and the selling pressure moved through time zones. Analysts have also studied portfolio insurance, computerized trading, market structure, valuation concerns, and international monetary tensions as contributors to the rapid fall.
“Black Monday” can refer to the October 19 event internationally, although some countries experienced their largest percentage loss on a different local date because of time-zone differences. It is distinct from the 1929 Wall Street crash, which also has famous “Black” day nicknames.