What happened to the US stock market in 1987?

February 12, 2020 Off By idswater

What happened to the US stock market in 1987?

The “Black Monday” stock market crash of Oct. 19, 1987, saw U.S. markets fall more than 20% in a single day. It is thought that the cause of the crash was precipitated by computer program-driven trading models that followed a portfolio insurance strategy as well as investor panic.

What caused the Oct 1987 stock market crash?

Understanding the Stock Market Crash of 1987 Heightened hostilities in the Persian Gulf, a fear of higher interest rates, a five-year bull market without a significant correction, and the introduction of computerized trading have all been named as potential causes of the crash.

How bad was the 1987 stock market crash?

On October 19, 1987, a date that subsequently became known as”Black Monday,” the Dow Jones Industrial Average plummeted 508 points, losing 22.6% of its total value. The S&P 500 dropped 20.4%, falling from 282.7 to 225.06. This was the greatest loss Wall Street had ever suffered on a single day.

How much did the stock market drop on Black Monday 1987?

Black Monday refers to the stock market crash that occurred on Oct. 19, 1987 when the DJIA lost almost 22% in a single day, triggering a global stock market decline.

How much did the market drop in 1987?

This was the largest one-day percentage drop in the history of the DJIA. Significant selling created steep price declines throughout the day, particularly during the last 90 minutes of trading. The S&P 500 Index dropped 20.4%, falling from 282.7 to 225.06.

What was the Dow in 1987?

776 to 2,722
From August 1982 to its peak in August 1987, the Dow Jones Industrial Average (DJIA) rose from 776 to 2,722, including a 44% year-to-date rise as of August 1987. The rise in market indices for the nineteen largest markets in the world averaged 296% during this period.

Where should I put money in a recession?

8 Fund Types to Use in a Recession

  1. Federal Bond Funds.
  2. Municipal Bond Funds.
  3. Taxable Corporate Funds.
  4. Money Market Funds.
  5. Dividend Funds.
  6. Utilities Mutual Funds.
  7. Large-Cap Funds.
  8. Hedge and Other Funds.

What happens when the stock market crashes?

Stock market crashes wipe out equity-investment values and are most harmful to those who rely on investment returns for retirement. Although the collapse of equity prices can occur over a day or a year, crashes are often followed by a recession or depression.