Black Monday 1987: Full Timeline
Early-to-Mid 1987: A Rising Market
U.S. stocks had climbed sharply for years, with the Dow more than doubling from 1985 to its August 1987 peak, raising concerns about overvaluation even as the rally continued.
October 19, 1987: Black Monday
The Dow Jones Industrial Average fell 22.6% in a single day — still the largest one-day percentage decline in its history, exceeding even the worst days of 1929. Computerized "portfolio insurance" trading strategies are widely believed to have accelerated the selling as automated systems triggered cascading sell orders.
The Days After
Just two months into his tenure, new Fed Chair Alan Greenspan issued a brief statement affirming the Fed's readiness to serve as a source of liquidity to support the financial system — widely credited with helping calm markets.
Aftermath
Unlike 1929, Black Monday did not spiral into a broader economic depression — the U.S. economy continued growing, and markets recovered over the following two years. It did, however, prompt new market safeguards, including circuit breakers designed to pause trading during extreme volatility.