Black Monday: The Worst US Stock Market Crash

The Dow's Drastic Drop

On October 19, 1987, the Dow Jones Industrial Average (DJIA) experienced its most significant single-session decline in history, dropping by 226 points, representing a loss of over 22%. This event, known as Black Monday, marked a dramatic turn from just two weeks prior when stock markets were on a seemingly continuous upward trend.

Speculative Concerns

Leading up to Black Monday, there were growing concerns about the speculative nature of the stock market. Bearish investor John Hussman warned that the S&P 500 had reached its speculative peak. These concerns were echoed by a multitude of market alarms before the crash.

Global Impact

Black Monday had a ripple effect across全球markets. On August 5, 2024, Japanese stocks experienced their most significant decline since 1987, signaling a widespread market correction. The crash also had a significant impact on US markets, with stocks opening lower due to the global market turmoil.