The Largest Single-Day Stock Market Drop Ever Recorded (And What Happened Next)

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habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.There are down days, and then there are catastrophic days. Every once in a while, a convergence of events conspires to drop the Dow Jones, S&P 500, and NASDAQ further than many traders would have imagined possible.Big corrections can occur every year or two, but one particular day in history brought more than just a downward correction. It was, in fact, the worst single day for the major U.S. stock market indexes ever recorded.It's instructive to consider what happened on that fateful day and how quickly fear can spread. At the same time, looking back at what happened after the crash can provide valuable lessons and even make you a better investor.You might assume that the worst one-day U.S. stock market drop must have occurred during the 1929 crash or the Great Depression that followed. However, in percentage terms and using the Dow Jones (which has a lengthy history) as the primary gauge, the deepest single-day collapse actually took place in the 1980s.That's right -- some of you may have been around long enough to remember this horrendous day. It was October 19, 1987, and the crash was so severe that it's still known to this day as Black Monday.The erasure of wealth on that day is mind-boggling. Even the lessons supposedly learned after the Great Depression didn't prevent the Black Monday rug pull.How bad was October 19, 1987? The NASDAQ declined 11.35% and that was a single-day record, but this wasn't even the worst major market index drop.That same day, the S&P 500 slid 58 points or 30% and, believe it or not, the Dow Jones plummeted 508 points or 22.6%. Stock markets in other regions, from Hong Kong to Australia, also collapsed on Black Monday.These numbers are important, but they don't tell the full story. Hence, we need to explore the contributing factors that led to such a dreadful market event.Nowadays, it's a cliché to say that stock markets around the world are interconnected. The drawdowns of 2008-2009 and 2020 reminded investors that when one nation sneezes, other countries can catch a cold.That concept might not have been so obvious back in 1987, though. Consequently, market participants learned the hard way that globalization can have pitfalls, especially when panic spreads.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,946.13 +56.06 (+0.81%)Dow 3049,482.15 +307.65 (+0.63%)Nasdaq23,152.08 +288.40 (+1.26%)Russell 20002,663.33 +11.00 (+0.41%)VIX17.93 -1.62 (-8.29%)Gold5,193.50 -32.70 (-0.63%)Trending tickersNVDA NVIDIA Corporation 195.56 +2.71 (+1.41%)CRM Salesforce, Inc. 191.75 +6.33 (+3.41%)BTC-USD Bitcoin USD 68,340.87 +4,157.71 (+6.48%)IONQ IonQ, Inc. 33.59 +1.97 (+6.23%)SNOW Snowflake Inc. 169.21 +8.15 (+5.06%)PortfolioSign in to access your portfolioSign inTop gainersYOU Clear Secure, Inc. 46.51 +13.04 (+38.96%)CRCL Circle Internet Group 83.14 +21.77 (+35.47%)CAVA CAVA Group, Inc. 85.67 +17.87 (+26.36%)CCC CCC Intelligent Solutions Holdings Inc. 6.34 +1.28 (+25.30%)ECG Everus Construction Group, Inc. 130.10 +25.89 (+24.84%)Top losersIBRX ImmunityBio, Inc. 9.54 -2.01 (-17.40%)LUNR Intuitive Machines, Inc. 15.89 -3.01 (-15.93%)DEO Diageo plc 86.15 -15.99 (-15.66%)GDDY GoDaddy Inc. 79.12 -13.18 (-14.28%)FSLR First Solar, Inc. 210.12 -33.09 (-13.61%)Most activeNVDA NVIDIA Corporation 195.56 +2.71 (+1.41%)PLUG Plug Power Inc. 1.9100 0.0000 (0.00%)IBRX ImmunityBio, Inc. 9.54 -2.01 (-17.40%)INTC Intel Corporation 46.88 +0.76 (+1.65%)ONDS Ondas Inc. 10.30 -0.10 (-0.96%)Top economic eventsEarnings eventsMy earnings eventsEarnings events