Black Monday, October 19, 1987, was the largest single-day percentage decline in the history of the Dow Jones Industrial Average. On that Monday the DJIA fell 508 points, or 22.6 percent, accompanied by crashes in the futures exchanges and options markets. Stock markets crashed worldwide, first in Asian markets other than Japan, then Europe, then the United States, and finally Japan, making it one of the first genuinely global market crashes of the era. The preceding five years had seen the S&P 500 index nearly triple, from 102.42 on August 12, 1982, to 336.77 on August 25, 1987, feeding a widespread sense that the market had become overpriced. The next day, October 20, the Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed its readiness to serve as a source of liquidity to support the economic and financial system, a brief statement from newly seated Chairman Alan Greenspan credited with helping avert a wider financial crisis. In the aftermath, regulators overhauled trade-clearing protocols across major market products.
Facts
LocationGlobal stock markets, crashing first in Asian markets other than Japan, then Europe, then the United States, and finally Japan. 1 Connections
Associated With
Greenspan had been confirmed as Federal Reserve Chairman on August 11, 1987, roughly two months before the crash, and issued the Fed's public response to it.
Source Wikipedia: Alan Greenspan
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Sources
1. Wikipedia: Black Monday (1987)
WikipediaUnited States, Federal Reserve response
The Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed today its readiness to serve as a source of liquidity to support the economic and financial system
United States, The crash
On that Monday, the DJIA fell 508 points (22.6 percent), accompanied by crashes in the futures exchanges and options markets
Background
The S&P 500 index tripled from 102.42 on August 12, 1982, to 336.77 on August 25, 1987.
Outcome
Stock markets crashed worldwide, first in Asian markets other than Japan, then Europe, then the US, and finally Japan.
Lead
Black Monday (also known as Black Tuesday in some parts of the world due to time zone differences) was a global, severe and largely unexpected stock market crash on Monday, October 19, 1987.
Black Monday (1987): Event Type
The next day, October 20, the Federal Reserve, consistent with its responsibilities as the Nation's central bank, affirmed its readiness to serve as a source of liquidity to support the economic and financial system, a brief statement from newly seated Chairman Alan Greenspan credited with helping avert a wider financial crisis.
In Group: Events of the Late Cold War and After, 1970 to 1999, Lead paragraph
stock market crash on Monday, October 19, 1987
View the Source Wikipedia: Alan Greenspan
WikipediaAssociated With: Alan Greenspan, Chairman of the Federal ReserveQuote, Associated With: Alan Greenspan, Chairman of the Federal Reserve
Two months after his confirmation, Greenspan said immediately following the 1987 stock market crash that the Fed "affirmed today its readiness to serve as a source of liquidity to support the economic and financial system".
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