Black Monday was 19 October 1987, when the Dow Jones Industrial Average fell 508 points, or 22.6%, to 1,738.74 and the S&P 500 fell 20.47%, their largest one-d…
The Dow closed at a record 2,722.42, up about 44% in 1987 alone. Rates and the dollar were starting to worry investors.
A trade deficit shock and a takeover-tax bill hit stocks. On Friday the Dow fell 4.6%, its first 100-point day.
The Dow lost 508 points to 1,738.74 and the S&P 500 fell 20.47%, both their worst days ever. About $500bn vanished.
Before the open, Alan Greenspan's Fed said it stood ready to supply liquidity, cut rates and urged banks to keep lending.
Hong Kong fell 33.3% when it reopened and 45.8% for the month. New Zealand eventually lost about 60%.
The Brady Report called stocks, futures and options one market. The NYSE adopted its first trading halts in October 1988.
The Dow closed at 2,734.64, above its 1987 peak. The US economy never fell into recession.
The 39th anniversary falls on a Monday again. From 6 December US stocks trade 23 hours a day with circuit breakers kept.
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