The largest single-day stock market crash, based on its percentage decline, was Black Monday on October 19, 1987.
Black Monday: The Largest Single-Day Decline
On October 19, 1987, the U.S. stock market experienced its most significant single-day percentage decline in history. This event, famously known as Black Monday, saw the Dow Jones Industrial Average plummet by an astonishing 22.6 percent. This equated to a loss of 508 points in a single trading session, marking an unprecedented drop.
Key Facts About Black Monday
To better understand the magnitude of this historic event, here are the key details:
| Aspect | Detail |
|---|---|
| Event Name | Black Monday |
| Date | October 19, 1987 |
| Index Affected | Dow Jones Industrial Average |
| Percentage Drop | 22.6% |
| Point Drop | 508 points |
Context of the 1987 Crash
While the Black Monday crash of 1987 represents the largest single-day percentage decline, it's important to note its broader context. Unlike the 1929 crash, which ushered in the Great Depression, the 1987 event was largely an isolated incident. It did not lead to a prolonged economic recession and its impact was considerably less severe than the 1929 crash in terms of its long-term economic consequences.
