Which 1989 U.S. market crash followed the collapse of a leveraged buyout of United Airlines?

The 1989 U.S. market crash that followed the collapse of a leveraged buyout of United Airlines was the Friday the 13th mini-crash.

On Friday, October 13, 1989, the Dow Jones Industrial Average fell 190.58 points, or about 6.9%. The immediate trigger was the failure of a proposed $6.75 billion leveraged buyout of United Airlines. Investors had expected the deal to proceed, and its collapse raised concern about the financing of other highly leveraged corporate takeovers.

The decline was concentrated in takeover-related and financial stocks, although broader markets also weakened. The event was much smaller than the 1987 crash, but it demonstrated how debt-financed acquisitions and complex financing arrangements could affect stock prices.

The name is sometimes confused with Black Monday, which refers primarily to October 19, 1987. “Friday the 13th mini-crash” specifically identifies the October 1989 sell-off and its connection to the United Airlines deal.