Which 1989 event caused the Dow Jones Industrial Average to fall 6.9% in one trading session?

The October 1989 mini-crash caused the Dow Jones Industrial Average to fall 6.9% in one trading session.

On October 13, 1989, the Dow dropped 190.58 points, or 6.91%, in what became known as the October 1989 mini-crash. The decline was associated with uncertainty over the proposed leveraged buyout of United Airlines’ parent company, UAL Corporation. When financing for the deal appeared likely to fail, investor confidence deteriorated rapidly.

The event occurred two years after the 1987 Black Monday crash, but it was much smaller and did not produce the same worldwide market breakdown. It also differed from the May 2010 Flash Crash, which unfolded rapidly during a single trading day and involved automated trading conditions.

The October 1989 decline is sometimes overlooked because markets recovered relatively quickly. Its 6.9% one-day loss nevertheless made it one of the largest daily percentage falls in the Dow’s history at that point.