After years of rapid growth—with many global markets rising over 30% annually for five years—stocks were considered significantly overvalued and primed for a correction.
Black Monday, which occurred on , stands as a defining moment in financial history, marking the largest one-day percentage decline in stock market history, with the Dow Jones Industrial Average (DJIA) plummeting 22.6%. This event marked the first truly global financial crisis, as panic spread from Asian markets to Europe and the U.S., resulting in roughly US$1.71 trillion in global losses. Black monday 1x9
Unlike the 1929 crash, Black Monday did not result in a long-term depression. The market recovered its losses within two years, according to The Guardian. Here is an analysis of the causes, events,
A proposed tax bill in the U.S. House of Representatives designed to make corporate takeovers more expensive, paired with statements about allowing the dollar to fall, reportedly lit the fuse, say reports in the International Banker and Investopedia. The Day’s Events (Oct 19, 1987)
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The event highlighted the dangers of fully automated, unmonitored trading, fundamentally changing how risk is managed on Wall Street.
