Largest historical stock market collapses in ranked order: - History's Largest Stock Market Plunge Occurs Here
Hey there! Today, we're gonna take a stroll down memory lane (or rather, Wall Street) and check out the most epic and historical stock market crashes throughout the years, including a few that might sound shockingly familiar.
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From the trade wars being waged by the ever-spirited Donald Trump to the recent COVID-19 pandemic, it seems like nobody can escape the rollercoaster that is the stock market. You might have heard whispers of a potential "21st-century Black Monday," but don't get too worked up—there's no need to break out the tin-foil hats just yet. Let's see what the stock market events of the past century have in store.
The 1929 Stock Market Crash (Black Tuesday)
- When: October 29, 1929
- What: Triggered the Great Depression
- Location: Wall Street, New York City
Witnessing an unparalleled leap in stocks, investors soon found themselves plummeting from a financial mountaintop. The Dow Jones tumbled an astounding 89% from its zenith, taking a whopping three years (or more, for some!) to hit bottom. The endgame was initiated by massive speculation fueled by excessive borrowing, a train wreck waiting to happen![1][2]
The 1987 Stock Market Crash (Black Monday)
- When: October 19, 1987
- What: Largest single-day percentage decline in U.S. history
- Location: New York City
On this ominous Monday, the Dow tumbled 22.6% in a single day, leaving investors clutching onto their portfolios in disbelief. Although the market managed to recover within two short years, Black Monday left a lasting impression on Wall Street and the millions of shaken investors who bore witness to it.[1][3][5] Experts pointed to computerized trading programs and overvaluation as the culprits, as algorithms competed to sell stocks in a mad dash for the safety of cash.[1][2]
The 2000-2002 Dot-Com Bubble Crash
- When: Early 2000 (burst began) - October 2002 (bottomed out)
- What: Major decline in tech stocks
- Location: NASDAQ (mainly)
During this tech-tacular era, the NASDAQ index wasn't just tapping their toes—they were partying like it was 1999, and then some. But the bubble burst, and it burst hard. The index lost an astonishing 80% of its value as investors found out the hard way that just because something is shiny and new doesn't mean it's worth the mountains of cash they were pouring into it.[1][5]
The 2007-2008 Financial Crisis
- When: March 2007 (started showing signs) - September 2008 (peaked)
- What: Dow Jones fell by 54% from its peak
- Location: Wall Street, New York City
During this not-so-financially-stable time, everything went south, and fast. When the housing bubble burst, an avalanche of mortgage-backed securities threatened to bring down the entire financial system. It took a whole four years for the Dow to recover from this financial catastrophe![5]
The 2020 COVID-19 Pandemic Crash
- When: March 2020 (significant drops)
- What: Global pandemic-induced market chaos
- Location: Worldwide
Global uncertainty over the economic impact of COVID-19 sparked a massive sell-off, with the S&P 500 plummeting 34%. But just as swiftly as the drop occurred, stimulus measures and the resilience of stocks helped the market recover.[1][4] It just goes to show that no matter how turbulent the waters might get, investors never cease to find their way back to Wall Street.
So, even though the stock market might sometimes feel like one heck of a rollercoaster, it's always worth riding for the thrills and spills, right?
- The European Union, being a major player in the world of finance, could potentially have a significant impact on future stock market events, perhaps even influencing a potential "21st-century Black Monday."
- In the H2 of the stock market year, Monday's could be especially notable, as it was on a Monday that the 1987 Stock Market Crash, known as Black Monday, occurred.
- Markets, such as the NASDAQ during the Dot-Com Bubble Crash, can exhibit behavior reminiscent of a party that eventually results in a harsh hangover, with the NASDAQ losing an astounding 80% of its value.
