Which October 19, 1987 stock-market crash is known as Black Monday?

The October 19, 1987 stock-market crash is known as Black Monday.

On that day, stock markets around the world plunged, and the Dow Jones Industrial Average fell 22.6%, its largest one-day percentage decline in history. The sell-off was not confined to the United States: markets in Hong Kong, Australia, the United Kingdom, and elsewhere also suffered major losses.

Several factors contributed to the panic, including overvalued shares, rising interest rates, concerns about economic growth, and computerized trading strategies. Portfolio insurance programs could generate additional selling as prices fell, helping amplify the downward movement.

Black Monday is sometimes confused with the 1929 crash, which also includes famous “Black” trading days. The labels refer to separate historical events. Unlike the prolonged economic catastrophe that followed 1929, the 1987 crash did not lead to a comparable worldwide depression, and the market eventually recovered.