⚡️💬 REMINDER - Black Monday 1987: What Happened and Why It Mattered?

On October 19, 1987, the Dow Jones crashed 22.6% — the largest single-day drop in U.S. history.

The panic quickly spread worldwide, hitting markets in Europe, Asia, and Australia.

Why It Crashed:

• Program Trading: Automated sell orders triggered a market freefall.

• Economic Fears: Rising inflation, trade deficits, and slowing growth spooked investors.

• Currency Turmoil: Confusion over U.S. dollar stabilization deals added uncertainty.

• Overvaluation: Markets had surged since 1982 — many saw a correction coming.

Aftermath:

• Central banks pumped liquidity to calm markets.

• U.S. stocks rebounded faster than expected.

• Circuit breakers were introduced to prevent future meltdowns.