If you think that the fall in the stock market is an event of the 20th century, then you are absolutely wrong. Ever since we started thinking, we have been thinking about money and although the stock market has seen a good rise in the last few years, there is a rise in some shares, but there is also a fall in some shares and this affects the people of the whole world.
We tell you when there was a big fall in the stock market.
Black Friday (1869) – A Gold Market Scandal
Back in 1869, two businessmen, Jay Gould and James Fisk, tried to take control of the gold market on the New York Gold Exchange. At the time, the U.S. economy was already struggling due to the Civil War. To stabilize things, President Ulysses S. Grant had introduced a policy to sell treasury gold at regular intervals. However, when Gould and Fisk’s scheme was exposed on September 24, 1869, gold prices crashed, triggering a stock market meltdown. The country faced economic turmoil for months afterward.
The Panic of 1893 – A Railroad-Induced Recession
The U.S. was booming economically before 1893, but risky investments in the railroad industry led to a major financial crisis. The trouble started when the Philadelphia and Reading Railroad went bankrupt, causing panic among investors. Banks and firms scrambled to collect their loans, forcing over 15,000 businesses to shut down. The impact was severe—unemployment hit 25% in Pennsylvania, 35% in New York, and a staggering 43% in Michigan.
Wall Street Crash of 1929
The 1920s, often called the “Roaring Twenties,” saw a rapid rise in stock market investments. But in October 1929, the bubble burst. On October 18, the stock market took a sharp dive, leading to widespread panic. By Black Tuesday (October 29, 1929), investors rushed to sell off their stocks, with 16.4 million shares traded in a single day. The market collapse wiped out billions of dollars and was a major trigger for the Great Depression.
The Recession of 1937-1938
Amid the ongoing Great Depression, the U.S. faced another setback between 1937 and 1938. Industrial production dropped by nearly 30%, and unemployment rose from 14.3% to 19%. Many questioned the effectiveness of President Franklin D. Roosevelt’s New Deal, which aimed to boost economic recovery. This 13-month-long recession made an already difficult situation even worse.
A Global Stock Market Crash,1987 (Black Monday)
On October 19, 1987, global stock markets plunged, starting in Hong Kong and spreading across Europe before hitting the U.S. The Dow Jones Industrial Average dropped 508 points to 1,738.74—a massive one-day loss. Experts blame a mix of overvalued stocks, computerized trading, and market panic for the crash. Interestingly, in Australia and New Zealand, the event is known as Black Tuesday due to time zone differences.
Asian Financial Crisis ( 1997 )
Often called the Asian Contagion, this crisis shook economies across East Asia. It all began on July 2, 1997, when Thailand was forced to devalue its currency due to massive foreign debt. By October 27, the Dow Jones Industrial Index had dropped by 554 points. Countries like Indonesia, South Korea, and Thailand were hit hardest, facing economic collapse and sharp currency devaluations.
Russian Financial Crisis (1998)
On August 13, 1998, Russia’s financial markets crashed after months of high interest rates and declining foreign investments. Just four days later, the government devalued the ruble and defaulted on its debts. Inflation skyrocketed to 84%, and many Russian banks shut down. Luckily, Russia recovered quickly, thanks to rising oil prices in 1999 and 2000.
The 2007-2008 Financial Crisis
This crisis, triggered by the U.S. subprime mortgage market, led to a massive international banking collapse. Governments worldwide had to step in with bailouts to prevent financial disaster. Despite these efforts, the Great Recession followed, making it the worst financial crisis since the Great Depression.
Chinese Stock Market Turbulence (2015-2016)
In June 2015, China’s stock market bubble popped, causing the Shanghai Stock Market to lose one-third of its value in just a month. On Black Monday (August 24, 2015), the Shanghai index plunged 8.24%, marking the worst drop since 2007. The crisis lasted for eight months, and experts believe it happened due to China’s shift from manufacturing to a more service-based economy.
2015-2017 Stock Market Sell-Off Global Market Shakeup
While China faced market turbulence, the U.S. had its own financial scare. On August 18, 2015, the Dow Jones Industrial Average fell 33 points. Within days, Wall Street saw a massive sell-off on August 21, affecting global markets. Oil prices hit a six-year low, and most Asian currencies (except the Japanese yen) lost value against the U.S. dollar.