The 1987 stock-market crash began with Black Monday, the record one-day percentage fall on Wall Street.
On October 19, 1987, the Dow Jones Industrial Average fell 22.6 percent, the largest one-day percentage decline in its history. The sell-off was not limited to the United States: markets in Europe, Asia, and other regions also suffered severe losses, making Black Monday a global crash.
Several factors contributed, including high valuations, rising interest rates, trade tensions, and fears about economic conditions. Computerized trading and portfolio-insurance strategies were also blamed for accelerating selling once prices began to fall.
Black Monday is often confused with the 1929 crash’s Black Tuesday because both names use a weekday and the color black. The two events were separated by 58 years and had different economic settings. After 1987, regulators introduced or strengthened safeguards such as trading halts and circuit breakers.