The U.S. stock-market crash that began with the Dow falling 23% on October 19, 1987, was Black Monday.
The Dow Jones Industrial Average dropped 508 points that day, a loss of approximately 22.6%, commonly rounded to 23%. The fall followed weakness in several international markets and became a worldwide financial shock as exchanges in Europe, Asia, and North America recorded steep declines.
Unlike the Wall Street Crash of 1929, Black Monday did not immediately develop into a decade-long depression. The U.S. economy remained comparatively resilient, and the stock market eventually recovered. Nevertheless, the event exposed risks created by complex trading strategies and rapidly connected global exchanges.
The Federal Reserve responded by providing liquidity and signaling support for the financial system. Exchanges also introduced coordinated trading halts, now known as circuit breakers, to slow future panicked selling. “Black Monday” can refer to other market disasters, so the year 1987 is essential when identifying this particular event.