Black Monday 1987
October 19, 1987
Duration: 1 day (crash), 3 months (bear market)S&P 500 DRAWDOWN
−34%
peak to trough
What Happened
TRIGGER
Portfolio insurance selling cascade, program trading, overvaluation, rising interest rates
On October 19, 1987, the Dow Jones Industrial Average plunged 22.6% in a single day — the largest one-day percentage decline in stock market history. Automated portfolio insurance strategies triggered a cascading sell-off that overwhelmed market makers. The crash spread globally, with markets in Hong Kong, Australia, and Europe suffering similar or worse declines. Despite the severity, the market recovered remarkably fast.
Key Facts
- 01Dow Jones fell 22.6% on October 19 — the worst single day ever
- 02S&P 500 fell 20.5% on the day, with the total peak-to-trough decline reaching 34%
- 03The crash was amplified by computerized portfolio insurance strategies
- 04Hong Kong market fell 45.8% over the surrounding period
- 05Circuit breakers were introduced as a direct result of this crash
Worst Performers
top 5 biggest losersBest Performers
top 5 most resilientSector Breakdown
HARDEST HIT SECTORS
MOST RESILIENT SECTORS
Recovery Timeline
20 months to recover prior highs (July 1989)
Time from trough to prior all-time high
PORTFOLIO STRESS TEST
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Historical data is educational only. Not financial advice. Past crisis returns do not predict future performance.