Which 1989 market crash began after the Dow Jones Industrial Average fell 6.91% on October 13?
Answer
Friday the 13th mini-crash
The Friday the 13th mini-crash began after the Dow Jones Industrial Average fell 6.91% on October 13, 1989.
The event occurred on Friday, October 13, 1989, when the Dow dropped 190.58 points, then its largest one-day point decline. The immediate trigger was concern that a leveraged buyout of United Airlines’ parent company would fail, but the episode also reflected broader anxieties about leveraged finance and market fragility.
The decline spread beyond the United States, affecting markets in Europe and the Asia-Pacific region. Despite the sharp fall, it did not develop into a prolonged collapse on the scale of 1929 or 2008. The market recovered much of the loss relatively quickly.
It is often confused with Black Monday, the 1987 crash, because both involved dramatic Dow declines. The 1989 episode is instead known as the Friday the 13th mini-crash, a name tied to both its date and its shorter-lived impact.