Which market suffered the 1987 crash known as Black Monday?

The 1987 crash known as Black Monday struck global stock markets. Although the Dow Jones Industrial Average's 22.6% fall made the U.S. session famous, major exchanges in Asia, Europe, and North America all experienced severe declines.

Hong Kong was among the earliest markets affected, and selling then moved westward through Europe before reaching the United States. The synchronized nature of the losses showed how increasingly connected international finance had become. Investors could react quickly to price movements and currency concerns in other countries.

The crash was not limited to ordinary individual selling. Portfolio-insurance programs and other computer-assisted strategies placed substantial sell orders during falling markets. Those orders added momentum to an already fragile situation.

Calling the event simply a New York crash is therefore misleading. New York supplied the best-known statistic, but the episode was worldwide. The financial system remained intact, and many markets began recovering soon afterward, though volatility stayed high.