What caused the Black Monday stock market crash?

What Was Black Monday? You may know the monetary significance of Black Friday, but are you familiar with Black Monday and its financial history? While the phrase can refer to multiple economic crises, Black Monday most often refers to the global stock market crash of 1987. On October 19, 1987, the Dow Jones Industrial Average fell 508 points, about 22.6 percent of its value. The drop wiped out approximately $500 billion, the largest single-day drop in history to that point. Stock markets in Europe, Hong Kong, Australia, and others around the world experienced similar crashes. Although no single event can explain the sudden drop, economists have identified numerous potential causes. Conflicts in the Middle East, including an American attack on Iranian oil platforms, caused fear among investors over the threat of disruptions to fuel supplies. Some experts claim the crisis was exacerbated by new computerized trading programs, which were programmed to sell stocks automatically as prices fell. Many initially feared that Black Monday would be the start of a long-term economic crisis similar to the Great Depression. However, the Dow made up the loss and ended 1987 slightly higher than the start of the year. To prevent further crises, governments implemented protective measures in the following years. Trading curbs, also known as circuit breakers, automatically stop trading for 15-minute periods or the remainder of the day to limit panic selling and the potential for crashes after certain percentage drops in a market’s or security’s value.