WhyItDropped

Nasdaq · October 19, 1987

Black Monday on the Nasdaq

-11.35%

single-day change vs previous close

Part of a longer stretch

Black Monday on the Nasdaq

near the end of it · 1987-08-27 → 1987-10-28, -35.96% over the whole period

What happened that day?

  • 19 October 1987 — Nasdaq Composite fell 11.35%
  • Smaller drop than the NYSE, but a different failure mode
  • Nasdaq then ran on market makers quoting prices over the telephone
  • As selling flooded in, many simply stopped answering. Prices stayed on screen while trades couldn't execute
  • Fell 35.96% from peak
  • Pushed Nasdaq toward automated order handling — the market had learned that when humans stop picking up, the market stops

Sources

Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.