1989 Stock Market Crash

The 1989 stock market crash, known as Black Monday, occurred on October 19, 1989, when stock prices rapidly declined worldwide. Leading up to the crash, investors became worried about high company valuations and economic growth, prompting large-scale selling. In the U.S., the Dow Jones Industrial Average dropped about 22% in a single day, the largest one-day percentage decline at the time. Factors like computerized trading and margin borrowing contributed to the panic. The crash shook investor confidence, caused significant losses, and prompted regulators to review trading practices to prevent future collapses.