Black Monday, October 19, 1987, marked one of the most infamous crashes in stock market history. Triggered by a combination of economic factors and heightened speculation, global markets experienced a sudden and severe downturn. In the United States, the Dow Jones Industrial Average plummeted by a staggering 22.6%, sparking panic selling and exacerbating the crisis. The crash sent shockwaves through financial markets worldwide, prompting central banks to intervene and implement measures to stabilize the situation.



The impact of Black Monday reverberated beyond equities, affecting currencies, bonds, and other financial instruments. Despite the turmoil, the broader economy ultimately proved resilient, avoiding a prolonged recession. Nevertheless, the crash underscored the inherent volatility and interconnectedness of global financial markets, leading to efforts to manage systemic risk and prevent future crises through regulatory reforms and enhanced market mechanisms. The lessons learned from Black Monday continue to inform financial policy and market behavior to this day, serving as a cautionary tale against excessive speculation and the dangers of unchecked market dynamics.




#financialeducation #mustwatch #stockmarketcrash