Which date saw the Dow Jones Industrial Average lose 22.6% in the 1987 stock-market crash?
Answer
October 19, 1987
October 19, 1987, saw the Dow Jones Industrial Average lose 22.6% in the 1987 stock-market crash.
The fall occurred on what became known as Black Monday. It was the largest one-day percentage decline in the Dow’s history, exceeding the percentage losses recorded during the 1929 crash. Stock markets in other countries also suffered sharp declines, making the event an international financial shock rather than a purely American episode.
Several explanations were discussed, including market overvaluation, rising interest rates, trade tensions, portfolio insurance, and computerized trading. The exact combination remains debated. A common mix-up is confusing Black Monday in 1987 with Black Monday in 1929, a label also used for a major Wall Street decline.
The crash did not develop into a prolonged depression. The Federal Reserve, led by Alan Greenspan, issued a reassuring statement and supplied liquidity to the financial system. Markets eventually recovered, although the event changed thinking about market safeguards and trading technology.