Wall Street has no shortage of market crashes, but one of the biggest collapses ever occurred Oct. 19, 1987 – a day known as “Black Monday,” when the Dow Jones Industrial Average lost 509 points in a single trading session.
The decline in the stock market resulting from Black Monday in 1987 amounted to 22.6% of the entire Dow. That was the largest single trading session decline in U.S. history – even more than Black Monday in 1929, which resulted in a 13% market fall.
The market rebounded faster after the 1987 crash than it did in 1929, when the Dow took two decades to fully recover. After 1987, stocks took two years to top the levels seen Oct. 16, 1987 – the last trading session before Black Monday.
That doesn’t mean the fallout from the stock market crash of Oct. 19, 1987 wasn’t serious and didn’t have ripple effects – it did. For example, the market collapse fueled major losses in worldwide exchanges, with many declining by 20% in the days following Black Monday.
Source: The Street