Definition: Black Monday actually refers to three different days, two of which connote disastrous stock market declines. The other Black Monday connotes retails sales that are in the black.
Black Monday 1987
Black Monday is used most often to refer to the largest one day percentage drop in stock market history. It occurred on October 19, 1987, when the Dow Jones Industrial Average dropped 22.61%, falling 508 points to 1738.74. Most experts agree it was caused by computer programs with set points that automatically called in "sell" orders when the market dropped a certain percent. Black Monday also preceded the 1989 Savings and Loan Crisis and the 1990-1991 recession.Black Monday 1929
Black Monday also refers to the day after Black Thursday, which kicked off the Stock Market Crash of 1929. This, in and of itself, was not enough to start the Great Depression of 1929. However, it set the stage by signalling the lack of confidence in business investing and in the government's ability to manage the economy.On Black Monday, stocks fells 13% -- not really a significant loss. However, it followed the 11% decline experienced a few days earlier, on Black Thursday>. The day after was Black Tuesday, when the stock market lost the rest of gains it had made during the entire year.
