What happened to the stock market in October 1987?

On October 19, 1987, the stock market collapsed. The Dow plunged an astonishing 22.6%, the biggest one-day percentage loss in history. Even bigger than the 1929 stock market crash, just before the Great Depression. By the closing bell, the Dow stood at 1,738.74, down 508 points.

How much did the Dow drop in October 1987?

The Dow Jones Industrial Average plummeted 22.6 percent on Oct. 19, 1987, also known as “Black Monday,” which amounted to 507.99 points at the time. A 22.6 percent plunge on the 30-stock Dow today would amount to a 5,735.76-point loss.

What caused the 1987 stock market drop?

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 caused the stock market to drop so much today?

U.S. stocks declined sharply on Wednesday as hotter-than-expected inflation data triggered massive selling, especially in technology shares. Investors have been fearful of a pick-up in inflation as it could squeeze margins and erode corporate profits.

Why have stocks been dropping?

Stocks on Wall Street dropped for the third consecutive day on Wednesday as new data on consumer prices added to investors’ concerns that inflation could upend the Federal Reserve’s efforts to keep interest rates low to bolster the economy. The S&P 500 fell 2.1 percent, pushing its losses this week to 4 percent.

How do I protect my 401k from the stock market crash?

Here are five ways to protect your 401(k) nest egg from a stock market crash.

Diversification and Asset Allocation.
Rebalance Your Portfolio.
Have Cash on Hand.
Keep Contributing to Your 401(k)
Don’t Panic and Withdraw Your Money Early.
Bottom Line.
Tips for Protecting Your 401(k)

What is the safest 401k investment?

Bond Funds Federal bonds are regarded as the safest investments in the market, while municipal bonds and corporate debt offer varying degrees of risk. Low-yield bonds expose you to inflation risk, which is the danger that inflation will cause prices to rise at a rate that out-paces the returns on your investments.