1989 stock market crash

The Friday the 13th mini-crash, or Black Friday, was a stock market crash that occurred on Friday, October 13, 1989. The crash was apparently caused by a reaction to a news story … Wikipedia
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Wikipedia
en.wikipedia.org › wiki › Friday_the_13th_mini-crash
Friday the 13th mini-crash - Wikipedia
August 4, 2025 - The Friday the 13th mini-crash, or Black Friday, was a stock market crash that occurred on Friday, October 13, 1989. The crash was apparently caused by a reaction to a news story of the breakdown of a $6.75 billion leveraged buyout deal for UAL Corporation, the parent company of United Airlines.
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Prezi
prezi.com › p › 2ws91wvoctjh › the-great-stock-market-crash-of-1989
The Great Stock Market Crash of 1989 by Ethan Perez on Prezi
Background of the Crash Events Leading to the Crash The Great Stock Market Crash of 1989 Introduction of the Great Stock Market Crash of 1989 Economic Factors Contributing In October 13, 1989, the stock market crash, also known as "Black ...
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Wikipedia
en.wikipedia.org › wiki › Black_Monday_(1987)
Black Monday (1987) - Wikipedia
3 weeks ago - Stocks did not begin to recover until 1989. In Japan, the October 1987 crash is sometimes referred to as "Blue Tuesday", because of the time zone difference, and its effects were relatively mild. According to economist Ulrike Schaede, the initial market break was severe: the Tokyo market declined 14.9 percent in one day, and Japan's losses of US$421 billion ranked next to New York's $500 billion, out of a worldwide total loss of $1.7 trillion.
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Quartr
quartr.com › insights › companies that had their ipo in 1989: the calm between the storms
Companies That Had Their IPO in 1989: The Calm Between the Storms
September 11, 2025 - The failed UAL deal had a profound impact on the stock market, particularly leading to the mini-crash on October 13, 1989, a day that came to be known as "Black Friday." The collapse of the UAL LBO deal acted as a catalyst, triggering a sharp ...
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Federal Reserve History
federalreservehistory.org › essays › stock-market-crash-of-1987
Stock Market Crash of 1987 | Federal Reserve History
According to Bernanke, the 10 largest New York banks nearly doubled their lending to securities firms during the week of October 19 even though discount window borrowings didn't themselves increase (Garcia 1989). Some experts argue the Fed's response to Black Monday ushered in a new era of investor confidence in the central bank's ability to calm severe market downturns. Unlike many prior financial crises, the sharp losses stemming from Black Monday were not followed by an economic recession or a banking crisis. Former Fed Vice Chairman Donald Kohn said, "Unlike previous financial crises, the 1987 stock market decline was not associated with a deposit run or any other problem in the banking sector" (Kohn 2006).
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Madison Trust Company
madisontrust.com › home › information center › visualizations › the biggest events of the past 100 years and how they affected the stock market
The Biggest Events of the Past 100 Years and How They Affected the Stock Market
November 8, 2024 - ... Black Friday didn’t always refer to a day of deep product discounts and shopping mania. In 1989, it was a day when the market dropped by 6.9% to 2,569.26, the largest drop since Black Monday.
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ACT Wiki
wiki.treasurers.org › wiki › Black_Friday
Black Friday - ACT Wiki
In financial markets, Black Friday means Friday 13 October 1989, a mini-crash in stock markets which was followed by a crash in high-yield ('junk') bond markets.
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The Guardian
theguardian.com › century › 1980-1989 › Story › 0,,110247,00.html
Black Monday | 1980-1989 | Guardian Century
Skip to main content · But despite fears that the continuing collapse on Wall St would force London shares even further down today, the Government said it would push ahead with the world's biggest share sale, the £7.2 billion BP offer
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Los Angeles Times
latimes.com › archives › la-xpm-1989-10-14-mn-334-story.html
Dow Falls 190; Drop Is Worst Since '87 Crash : Stock Market: The selloff is fueled by fears that takeover fever is cooling, and that record prices will moderate. - Los Angeles Times
March 11, 2019 - ... NEW YORK — Evoking chilling memories of the stock market crash almost exactly two years ago, the Dow Jones industrial average plunged 190.58 points on Friday amid fear of an end to the takeover fever that had driven stock prices to record ...
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Reddit
reddit.com › r/stocks › 38 years ago today, black monday shook the markets, are there traders here who remember it?
r/stocks on Reddit: 38 years ago today, Black Monday shook the markets, are there traders here who remember it?
October 20, 2025 -

On October 19, 1987, global markets experienced one of the most dramatic single-day crashes in history: the Dow Jones dropped 22%.

Panic spread across trading floors, screens flashed red, and chaos ruled the markets. Investors and traders alike were caught off guard, as risk models back then offered little protection against a crash of this magnitude.

Yet, despite the unprecedented move, the market eventually recovered, as it always has, reminding us that volatility is part of the trading landscape.

Today, technology and AI tools aim to help traders spot early warning signs, the cracks in the market before they escalate into full-blown panic.

It’s sobering to look back at Black Monday and realize how quickly sentiment and fear can dominate.

Are there any traders here who actually experienced Black Monday firsthand? How did it shape your approach to risk and trading afterward?

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Federal Reserve
federalreserve.gov › pubs › feds › 2007 › 200713 › 200713pap.pdf pdf
A Brief History of the 1987 Stock Market Crash with a ...
Indeed, the crash may have provided ... Figure 1). Price increases outpaced earnings growth and lifted price-earnings ratios; some com- mentators warned that the market had become overvalued (see for example Wall Street Journal · (1987a) and Anders and Garcia (1987)). There had been an influx of new investors, such as pension · funds, into the stock market during the 1980s, and the increased demand helped support prices
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Reddit
reddit.com › r/valueinvesting › 37 years ago today, the dow plunged 22% in a day. how prepared are you for another black monday ?
r/ValueInvesting on Reddit: 37 years ago today, the Dow plunged 22% in a day. How prepared are you for another Black Monday ?
October 20, 2024 -

"After having lost some 10 percent of its value the week before, the Dow Jones Industrial Index fell 508 points, or 22.6 percent, on Black Monday, wiping out $500 billion in what was, at that time, the biggest-ever one-day stock-market loss to date."

It took roughly two years for the DOW to recover to pre-Oct levels.

The regulators has since introduced crash protection via circuit breakers, so that trading stops if it were to plunge. Even during the great financial crisis in 2008, the largest single one day fall was 8%.

How prepared are you for another Black Monday if it were to occur ?

  • Most of us will probably shrug our shoulders and carry on,

  • the smarter ones amongst us will probably deploy the cash that has been sitting on the sidelines.

  • Those who borrowed money could face a margin call.

  • Those who shorted the market are probably laughing all the way to the bank.

By the way, this is a great video capturing the mood of that week.

https://www.youtube.com/watch?v=XFn1G2goDQw

Best quote: "I am too old to cry but it hurts too much to laugh"

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End Dec 31 1986, DJIA 1,895.9

Peak August 25th 1987 DIJIA 2722.42

End October 19th 1987 DJIA 1738.40%

End Dec 31 1987, DJIA 1938.83

Gain from Jan to Sep 1987: 32.9%

Loss from Peak 1987 to End of Black Monday: -36%

Loss from single day Black Monday: -22.61%

No.1 Movie at the box office during that week: Fatal Attraction

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Yale Library
elischolar.library.yale.edu › cgi › viewcontent.cgi pdf
Journal of Financial Crises Journal of Financial Crises Volume 2 Issue 3 2020
By Wednesday, October 21, 1987, the market had recovered 58% of the Black Monday losses. However, it wouldn’t surpass the August 1987 high until May 1989.
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NPR
npr.org › 2012 › 10 › 18 › 163152720 › black-friday-haunts-market-25-years-on
'Black Monday' Haunts Market, 25 Years On : NPR
October 18, 2012 - MARTIN: Tomorrow marks the 25th anniversary of the stock market crash known as Black Monday. Joining us to talk about it is Roben Farzad. He's a contributing writer for Bloomberg Businessweek. So how did that compare with what we experienced in 2008? FARZAD: You know, believe it or not, the stock market was revisiting new highs by the middle of 1989, and that's why this does seem like a blip, whereas the stock market took about four years to recover after the crash of 2008.
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Investopedia
investopedia.com › timeline-of-stock-market-crashes-5217820
Timeline of U.S. Stock Market Crashes
February 28, 2022 - Black Monday spurred several crucial ... systems between global exchanges ... The Friday the 13th mini-crash occurred on Oct. 13, 1989......
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Federal Reserve Bank of Boston
bostonfed.org › - › media › Documents › neer › neer293a.pdf pdf
Stock Market Crashes
I. Short-Run Stock Price Movements ... ARMA(1,1) process captured the data. The results, ... Autoregressive-Moving Average estimates. These · indicate significant autocorrelation in the adjusted ... H. Did Fundamentals Trigger the Crash? ... October 29, October 30, and December 16. Public ... Friday, October 16, at a rate of 10.24 percent. ... Friday; the actual decline was about 10 percent. ... Black Monday.
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Wikipedia
en.wikipedia.org › wiki › Stock_market_crash
Stock market crash - Wikipedia
September 15, 2025 - The crash on October 19, 1987, Black Monday, was the climactic culmination of a market decline that had begun five days before on October 14. The DJIA fell 3.81% on October 14, followed by another 4.60% drop on Friday...
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Corporate Finance Institute
corporatefinanceinstitute.com › home › resources › black monday market crash
Black Monday Market Crash
February 3, 2025 - The 1987 crash was a significantly shorter-lived phenomenon in the markets. The Dow, for example, had recovered 288 points of the 508-point loss that it suffered on Black Monday within just a few trading days.
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OANDA
oanda.com › sg-en › trade-tap-blog › glossary › what-is-black-monday
Black Monday: causes, impact and historical context | OANDA | Singapore
October 3, 2025 - Triggered by a massive sell-off in the US market, global stock markets, including those in Asia, experienced a chain reaction of declines the day after, 20 October. ... The daily chart above shows the movement of the Dow Jones Industrial Average ...