In October 1987, the stock market crashed unexpectedly, causing worldwide economic instability.
sudden accident Now known as Black Monday and years later, it is in trend again amid greater economic anxiety.
What is Black Monday?
Black Monday is the name given to the stock market crash of 19 October 1987.
At that time, 23 major world markets experienced steep declines.
When measured in USD, eight markets fell between 20 and 29 percent, while three fell between 30 and 39 percent — Malaysia, Mexico and New Zealand.
Markets in Hong Kong, Australia and Singapore fell more than 40 per cent.
Austria experienced the smallest drop, down 11.4 percent. Hong Kong was the most severe, with their market falling 45.8 percent.
Worldwide losses were estimated at about $1.71 trillion in USD at the time.
Many believed that Black Monday would start a second Great Depression.
How did Black Monday affect the United States?
Between August 1982 and 1987, the Dow Jones Industrial Average rose from 776 to 2,722.
At that time, the average number of shares traded on the New York Stock Exchange increased from 32 million to 181 million shares.
Just days before Black Monday, the United States House Committee on Ways and Means introduced a tax bill intended to reduce the tax benefits associated with funding mergers and buyouts.
On Wednesday, October 14, 1987, the United States Department of Commerce announced that high trade deficit figures had a negative effect on the value of the dollar, raising interest rates and causing stock prices to plummet.
The Dow Jones fell 95.46 points, falling another 58 points the next day.
The Dow Jones fell another 108.35 points on the Friday before Black Monday.
When Monday came and the stock market opened again, the Dow Jones broke 508 points.
This triggered crashes in futures exchanges and options markets, and was the largest one-day percentage drop in Dow Jones history.
Of the more than 2,000 stocks on the New York Stock Exchange, 195 saw trading delays and stagnation throughout Black Monday.
Computers were overwhelmed by the total trading volume, further delaying orders.
Why is Black Monday trending on Twitter?
On June 10, 2022, the Labor Department released an inflation report for the month of May.
The DOL reported that the cost of goods and everyday life has reached the highest level in an estimated 40 years.
The Dow Jones Industrial Average, the S&P 500 and the Nasdaq 500 all saw steep declines – resulting from concerns about economic growth and another recession.
A few days later, on Monday, June 13, Black Monday started trending on Twitter.
One user tweeted, “Black Monday Crash is starting!!!”
Another user said: “Looks like it’s going to be a black Monday in the stock market today.”
“Black Monday was an inevitability after the Biden installment,” tweeted another.
What is the Dow Jones Industrial Average?
The Dow Jones Industrial Average, also known as the Dow Jones, is a price-weighted measurement stock market index of the 30 major companies within the United States stock exchanges.
The Dow Jones was first calculated by Charles Dow on May 26, 1896.
Charles was a co-founder of both The Wall Street Journal and Dow Jones & Company.
He worked with his business associate, Edward Jones, to establish market measurements.
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