|
Black Monday, Oct. 19, 1987, in U.S. history, day of financial panic. The Dow Jones Average fell 508.32 points, a drop of 22.6%, the largest since 1914. The point decline as well as the volume, 604.33 million shares, exceeded previous records. Among the possible causes were investors' anxiety about U.S. international trade and federal deficits, U.S. criticism of West Germany's economic policies, the cascading effect of the automatic computerized selling of stocks, and the drop in stock-index futures triggered by computerized trading programs. Stocks throughout the world joined the slide. By mid-1988 the stock market had recovered, and the U.S. economy was largely unaffected by the crash.
The Columbia Electronic Encyclopedia Copyright © 2009, Columbia
University Press.
Licensed from Columbia University Press. All rights reserved.
|
