Which stock exchange saw the Dow Jones Industrial Average lose 22.6% during the 1987 crash?
Answer
New York Stock Exchange
The New York Stock Exchange saw the Dow Jones Industrial Average lose 22.6% during the 1987 crash.
On October 19, 1987, the Dow fell 508 points, or 22.6%, its largest one-day percentage decline. The session became known as Black Monday, although markets around the world also suffered heavy losses. The New York Stock Exchange was the leading venue associated with the Dow and the dramatic United States sell-off.
Possible causes included expensive share valuations, rising interest rates, trade tensions, and computerized portfolio-insurance strategies that generated further selling as prices dropped. No single explanation accounts for every feature of the crash.
The 1987 event differed from 1929 in several important ways. The economy did not enter a Great Depression, and the Dow eventually recovered. Regulators later introduced circuit breakers and other trading safeguards intended to slow extreme market declines.