Quick Answer: What Happened To The Stock Market In 1987?

What happened in the stock market crash of 1987?

Key Takeaways.

The “Black Monday” stock market crash of October 19, 1987, saw U.S.

markets fall more than 20% in a single day.

It is thought that the cause of the crash was precipitated by computer program-driven trading models that followed a portfolio insurance strategy as well as investor panic.

What happened to the market on October 19 1987?

On Oct. 19, 1987, a day that became known as “Black Monday,” the stock market crashed as the Dow Jones Industrial Average plunged 508 points, or 22.6 percent in value, its largest single-day percentage drop. The crash came after a two-week period in which the Dow dropped 15 percent.

Why did stocks drop 1987?

Key Takeaways. The “Black Monday” stock market crash of October 19, 1987, saw U.S. markets fall more than 20% in a single day. It is thought that the cause of the crash was precipitated by computer program-driven trading models that followed a portfolio insurance strategy as well as investor panic.

How long did 1987 crash last?

It took only two years for the Dow to recover completely; by September of 1989, the market had regained all of the value it had lost in the ’87 crash. Many feared that the crash would trigger a recession. Instead, the fallout from the crash turned out to be surprisingly small.

What was the economy like in 1987?

As in 1987, the US economy has been growing at a fair lick. Unemployment is low and signs of inflation are starting to appear. As in 1987, the dollar is weak and share prices have been on a sustained upward run.

What percentage did the market drop in 2008?

The decline of 20% by mid-2008 was in tandem with other stock markets across the globe. On September 29, 2008, the DJIA had a record-breaking drop of 777.68 with a close at 10,365.45.

How long did it take for the stock market to recover?

According to a research note from Bank of America Securities, it has taken 1,100 trading days on average to regain the territory lost during a bear market. There are 252 trading days in a year, so that means the average time to get back to where we were is 4.4 years.

What was the Dow Jones average at the end of 2008?

Dow Jones – 10 Year Daily Chart

Dow Jones Industrial Average – Historical Annual Data
YearAverage Closing PriceYear Open
20098,885.659,034.69
200811,244.0613,043.96
200713,178.2612,474.52

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Are money market funds safe in a recession?

Money market mutual funds can be a safe option for a recession, but they can’t match the performance of stocks. Farberov says investors should consider how holding money market funds may affect overall portfolio returns in the short term and what trade-off they may be made by avoiding stocks.

What was happening in 1987?

Major Events of 1987

  • Rioting breaks out during Haj.
  • Intifada begins.
  • Tamil guerillas ambush convoy.
  • USS Stark hit by Exocet missiles.
  • Reagan and Gorbachev meet in Washington.
  • Gorbachev campaigns for Glasnost and Perostroika.
  • Libyan troops driven out of Chad.
  • India invades Pakistan.