1987 Stock Market Crash

1987 stock market crash happened on "Black Monday", October 19, 1987, when Dow Jones Industrial Average (DJIA) dropped by 508 points to 1739 (22.6%).

DJIA (19-Jul-1987 to 19-Jan-1988)

The Black Monday stock market decline was, to that point, the largest one-day percentage decline in stock market history.

Despite the market crashing on Black Monday, the DJIA was actually in positive territory for the 1987 calendar year, ending December 31st, 1987, at 1,939 points.

There have been a lot of speculation around the reasons behind the event, including blame laid on overvaluation, illiquidity, and market psychology.

The period was also time when computers increasingly started to play roles in trading, especially by automated trading systems called program trading.

There were some, such as U.S. Congressman Edward J. Markey, who stated that "Program trading was the principal cause", even though no proof to that effect has been laid out so far.

NUY professor Richard Sylla has also listed causes to include international disputes about foreign exchange and interest rates, and fears about inflation.


From 1987 stock market crash page to Forex Guide index