In finance, “Black Monday” refers to Monday October 19, 1987, when stock markets around the world crashed.  Click “more” below as IFWT remembers the events of that day.

DJ Matthew Tyler
In 1986, the United States economy began shifting from a rapidly growing recovery to a slower growing expansion.  The stock market advanced significantly, with the Dow peaking in August 1987 at 2722 points, or 44% over the previous year’s closing of 1895 points.

With other markets dropping significantly and the Great Storm of 1987 closing all markets in London on Friday, October 16th,  American Treasury Secretary James Baker stated concerns about the falling prices. That weekend many investors worried over their stock investments.

By the end of October, stock markets in Hong Kong had fallen 45.5%, Australia 41.8%, Spain 31%, the United Kingdom26.45%, the United States 22.68%, and Canada 22.5%. New Zealand’s market was hit especially hard, falling about 60% from its 1987 peak, and taking several years to recover. T he Black Monday decline was the largest one-day percentage decline in the Dow Jones.