Black Monday: The Global Stock Market Crash of 1987

The Day the Markets Crashed

Black Monday, also known as Black Tuesday in some parts of the world due to time zone differences, was a global stock market crash that occurred on October 19, 1987. The sudden and severe downturn in stock prices was largely unexpected, and had a significant impact on the global economy.

The Crash and Its Impact

The Dow Jones Industrial Average fell by over 20% in a single day, the largest single-day percentage decline in its history. The crash was triggered by a combination of factors, including: * The rise of computer-based trading systems * The deregulation of the financial industry * Excessive speculation The Black Monday crash led to a loss of confidence in the stock market and a wave of economic uncertainty. The Dow Jones Industrial Average did not recover its pre-crash level until August 1989.

Aftermath and Legacy

The Black Monday crash has had a lasting impact on the financial industry. It led to the implementation of new regulations to prevent similar crashes in the future. It also highlighted the interconnectedness of the global financial system and the need for international cooperation to manage financial crises.