Which 1989 market crash began when investors rejected the leveraged buyout of United Airlines?

The 1989 market crash that began when investors rejected United Airlines’ leveraged buyout was the Friday the 13th mini-crash.

On Friday, 13 October 1989, the Dow Jones Industrial Average fell 190.58 points, or about 6.9%. The decline followed news that a group attempting a highly leveraged buyout of United Airlines could not secure the required financing. Investors feared that the failed deal signaled broader weakness in the market for highly leveraged transactions.

The sell-off was concentrated in the United States but reflected wider concerns about debt-financed acquisitions and market valuations. Although the fall was dramatic, it was much smaller and shorter-lived than the October 1987 crash. The episode is therefore commonly described as a “mini-crash.”

It is easy to confuse this event with Black Monday, the global market collapse of 19 October 1987, or with Black Monday in 1989, when Hong Kong’s market fell sharply. The distinctive clue here is the failed United Airlines buyout and the date Friday the 13th.