Which 1998 stock-market crash followed Russia’s default on domestic government debt?

The 1998 stock-market crash followed the Russian financial crisis, including Russia’s default on domestic government debt.

On August 17, 1998, Russia devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic debt. The announcement shocked investors already worried about weak commodity prices, political instability, and the cost of maintaining Russia’s exchange-rate regime.

The crisis spread through international markets. The failure of the hedge fund Long-Term Capital Management, which had large leveraged positions, became a major related event. The Federal Reserve helped coordinate a private-sector rescue, although it did not directly provide the fund’s bailout money.

The Russian crisis was connected to, but different from, the Asian financial crisis that began in 1997. Russia’s economy later benefited from rising oil prices and improved fiscal conditions, but the 1998 episode caused severe domestic financial disruption.