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This Month in Business History

Black Monday Stock Market Crash

Angelique Richardson, Intern
Ellen Terrell, Editor
April 2008

      Overview                         Print Resources
    Internet Resources         LC Catalog Searches

Overview

Just as the stock market crash of October 28, 1929, has forever come to be remembered as "Black Tuesday," so October 19, 1987, has come to be known as "Black Monday." It was on this day that the stock market again crashed, precipitating one of the first finacial crises of the modern globalized era, as the Dow Jones Industrial Average (DJIA) dropped 508 points, or 22.6% of its value.1

Within that one day, over $500 billion was lost from the Dow Jones Index.2 When people heard what was happening on Wall Street, they tried to contact their brokers, but could not reach them due to the influx of phone calls. Millions were lost instantly.

 

Caption: above:
Dejected man with head in hands, newspaper on floor with headlines of Stock market crash.
Reprint of drawing by Rollin Kirby. October 1929.
Prints & Photographs Division
Library of Congress
Reproduction number: LC-USZ62-55980

The DJIA was not the only market affected. The National Association of Securities Dealers Automated Quotations (NASDAQ) also recorded its all-time record one day loss of 11.35% and did not recover very quickly. The S&P 500 lost 58 points, or 30% of its value.3

The United States was not the only country in which the stock markets crashed. Markets in Australia, Hong Kong, Singapore, and Mexico also took a beating. Around the world stock market values were plunging, causing a rampant fear that this event would mimic the October 28, 1929, stock market crash, which contributed to the Great Depression of the 1930's.4   However, this proved not to be the case. In just a little over two years, the Dow surpassed its all-time high of August 25, 1987. "From that point it never looked back as it began its historical climb upwards in the 1990s, producing the biggest and longest bull market in history."4

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Internet Resources

"Wall Street's October Massacre," by Gordon Bock, Rosemary Byrnes, and Frederick Ungeheuer.
Time Magazine. Monday, Oct. 26, 1987
http://www.time.com/time/magazine/article/0,9171,965842,00.html External Link

The Stock Market Crash of 1987
Stock Market Crash Dot Net
http://www.stock-market-crash.net/1987-crash/ External Link

History of the New York Stock Exchange.
Library of Congress. Business Reference Services.
https://www.loc.gov/rr/business/hottopic/stock_market.html

Stock Market Crash of 1987
Money-zine.com
http://www.money-zine.com/Investing/Stocks/Stock-Market-Crash-of-1987/ External Link

History of Wall Street.
Library of Congress. Business Reference Services.
https://www.loc.gov/rr/business/wallstreet/wallstreet.html

Print Resources

Metz, Tim. Black Monday : The Stock Market Catastrophe of October 19, 1987. Washington, D.C.: Beard Books, 2003.
LC Classification: HG4572.M58 2003

Sobel, Robert. Panic on Wall Street : A Classic History of America's Financial Disasters with a New Exploration of the Crash of 1987. New York : Truman Talley Books/Dutton, 1988.
LC Call Number: HG4572.S674 1988
Catalog Record: 88050104

Weiner, Eric J. What Goes Up: the Uncensored History of Modern Wall Street as Told by the Bankers, Brokers, CEOs, and Scoundrels Who Made It Happen. New York: Little, Brown, and Co., 2005.
LC Call Number: HG 4572.W37 2005
Catalog Record: 2005000151
Table of Contents

Wright, Russell O. Chronology of the Stock Market. Jefferson, NC: McFarland, 2002.
LC Call Number: HG4572.W75 2002
Catalog Record: 2002265975

Library of Congress Catalog Searches

Additional works on this topic in the Library of Congress may be identified by searching the Online Catalog under appropriate Library of Congress subject headings. Choose the topics you wish to search from the following list of Library of Congress subject headings to link directly to the Catalog and automatically execute a search for the subject selected. Please be aware that during periods of heavy use you may encounter delays in accessing the catalog. For assistance in locating other subject headings which relate to this subject, please consult a reference librarian.

New York Stock Exchange

New York Stock Exchange--History

Stock Market Crash, 1987

Wall Street (New York, N.Y.)--History


 1. Wright, Russell O. Chronology of the Stock Market. Jefferson, NC: McFarland, 2002. p.69. See also Michaels, James W. "Black Monday and Red Faces," Forbes. New York: Nov 3, 1997. Volume 160, Issue 10; pgs. 44-45.

 2. "Black Monday—The Stock Market Crash of 1987." Stock Market Crash. c.2008
http://www.stock-market-crash.net/1987-crash/ External Link

 3. Wright, p.70.

 4. Wright, p.70.

Last updated: 08/13/2015

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