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US stocks suffered their worst falls in more than six years on Monday in a sell-off sparked by concerns of higher interest rates.

The Dow Jones Industrial Average index tumbled 1,175 points, or 4.6% to close down at 24,345.75.

The White House moved to reassure investors saying it was focused on "long-term economic fundamentals, which remain exceptionally strong".

Signs of improvement in the economy had driven US markets to record highs.

Ever since he was elected in November 2016 President Donald Trump has tweeted a number of times about the increase in US stock markets, using the gains since he took office to illustrate market improvement.

"Economic news from the US has been stronger than anticipated," said David Kuo, chief executive of financial services advisory Motley Fool.

"So, perversely, the market correction has been caused by positive economic news".

Monday's decline is the largest decline in percentage terms for the Dow since August 2011, when markets dropped in the aftermath of "Black Monday" - the day Standard & Poor's downgraded its credit rating of the US.

What has the reaction been?

The drop on the Dow was closely followed by the wider S&P 500 stock index, down 4.1% and the technology-heavy Nasdaq, which lost 3.7%.

In London, the FTSE 100 index of leading companies also fell to close down 1.46% or 108 points lower.

In Tuesday's early Asian trade, stocks were following Wall Street's lead. Japan's benchmark Nikkei 225 sank 4.8% before recovering slightly, while Australia's benchmark S&P/ASX 200 was down 2.7%. In South Korea, the Kospi lost 2.3%.

Asian markets are following Wall Street's lead - but why?

Why is this happening?

Investors are reacting to changes in the outlook for the American and global economy, and what that might mean for the cost of borrowing.

The stock market sell-off accelerated on Friday when the US Labour Department released employment numbers which showed stronger growth in wages than was anticipated.

CMC Markets analyst Michael McCarthy said the wage numbers "blew lower interest rates out of the water".

"The share selling....reflects a higher than previously anticipated interest rate environment," Mr McCarthy said.

In response to that, investors moved to sell out of stocks and put money into assets like bonds which benefit from higher interest rates.

"This isn't a collapse of the economy. This isn't a concern that markets aren't going to do well," said Erin Gibbs, portfolio manager for S&P Global Market Intelligence.

"This is concern that the economy is actually doing much better than expected and so we need to re-evaluate," she said.

What has driven the Dow's surge?

Stronger global growth has prompted central banks in Europe, Canada and elsewhere to ease away from policies put in place to stimulate the economy after the financial crisis.

What impact will this have?

Analysts say investors should be prepared for choppier stock markets in the months ahead.

But the Dow closed Monday having shed about a third of its gains since Mr Trump took office in January 2017.

It marks a dramatic turnaround from January, when it raced past the 25,000 and 26,000 point milestones in less than a month.

Joel Prakken, chief US economist for IHS Markit, predicts share price gains will be limited over the next two years.

But he added that markets would need to deteriorate more significantly for him to start to worry about the broader economy.

"The difference between this year and last year is we're going to see more periods of volatility like this as the market reacts to higher inflation," he said.

"We're just not used to it because it's been so long since we've had a significant correction."

What does it mean for investors?

Investors have been bracing for a downturn after months of seemingly unstoppable gains.

Amid the market plunge on Monday, websites for several large money management companies suffered slowdowns or crashes.

Wall Street firms also said they have been fielding calls from people worried about their investments.

Analysis: By Anthony Zurcher, BBC North America reporter

Image copyright Getty Images Image caption Jerome Powell was sworn in as the new chairman of the US Federal Reserve on Monday

Boasting about stock market gains is a dangerous game that most presidents avoid playing. Barack Obama did it occasionally, but only after the US economy had climbed significantly from the wreckage of the 2008 collapse.

After warning of a market bubble during the campaign, however, Donald Trump became the Dow Jones's biggest cheerleader- in tweets, at rallies and even during last week's State of the Union address. That set up the jarring visual of the president boasting about the benefits of his tax cuts in a speech as the markets headed south.

US cable news channels, which had been airing the president live, cut into their coverage to report on the record-setting day. It was a highly visible hiccup in the recent US economic success story that will be hard for most Americans to miss.

The president will make the case that the fundamentals in the economy are still strong. Wages are up and unemployment is down - possibly contributing to stock drop. If growth continues, this could be chalked up as yet another rhetorical mis-step by a non-politician.

If it's the beginning of a larger correction in an election year, however, the president's words could come back to haunt him.

You might also be interested in:</s>CLOSE Stocks ended their worst week in two years Friday, with the Dow dropping 665 points or 2.5 percent, its largest decline since June 2016. (Feb. 2) AP

Traders and financial professionals work on the floor of the New York Stock Exchange on Jan. 31, 2018 in New York City. (Photo: Drew Angerer, Getty Images)

The Dow Jones industrial average suffered its biggest one-day point drop in history, plunging 1,175 points on Monday and giving back all its 2018 gains as a flash-crash-style drop intensified a free fall in stocks that began last week.

Fears of spiking inflation and borrowing costs caused investors to rethink their bullish views on stocks, which until just last week had fueled huge gains in the blue-chip Dow.

In a wild day on Wall Street, the Dow suddenly spiraled down almost 1,600 points at one moment — in what some analysts said was a computer- and machine-generated drop similar to the Dow's "Flash Crash" back in 2010. The average then recovered and ended the day down 1,175.21 points, or 4.6%, at 24,345.75.

While the pounding in point terms was historic — with the loss eclipsing the prior one-day record of 778 points lost during the 2008 financial crisis — the Dow's 4.6% decline on Monday was not sizable enough for Wall Street pros to describe it as a crash. And the decline didn't even make the top 20 biggest percentage drops for the Dow.

"A waterfall crashette," is the way Gary Kaltbaum, president of Kaltbaum Capital Management, described the drop, which left the Dow down 8.5% for the year and ever closer to a long-anticipated "correction," or 10% drop, that many Wall Street pros have been calling for after the Dow's 25% gain last year.

Asked why the Dow, which also cratered 666 points Friday, gyrated so wildly, Axel Merk, chief investment officer at San Francisco-based Merk Investments, said: "When stocks reach new highs month after month, when a virtual currency is the hottest thing in town, greed has overtaken fear. And when that happens, well, it's time to be fearful again. Consider this a wake-up call."

The market had been enjoying a dizzying ascent since President Trump was elected in November 2016, with the Dow gaining 45% through its record closing high on January 26, 2018.

But investors got too exuberant and stock prices ran up too much, too fast, making the market vulnerable. Stocks simply had too many buyers at the start of the year. In fact, more than $100 billion flowed into stocks globally at the beginning of 2018, according to Bank of America Merrill Lynch data.

The Dow's massive drop was the market's way of "unwinding" the excess price gains that had built up, says Tom Essaye, editor and founder of a financial newsletter The Sevens Report.

The selloff has been sparked by inflation fears and worries that interest rates could rise faster than expected. Those fears stem from a strong employment report released Friday that showed wage growth for hourly workers over the past year had risen nearly 3%, its quickest pace since 2009.

Monday's selloff has pushed the Dow down more than 5% from a high for the first time since the Brexit vote in June 2016 — or 19 months ago, a record. In contrast, since 1928, the market has suffered an average of 3.4 annual drops of 5% or more, according to Bespoke Investment Group.

The long period since the last scary market event makes the current drop, which market pros had been warning about, seem worse than it is.

"No matter how well telegraphed or forecasted a pullback may be, it's still never fun," Chris Verrone, a stock strategist at New York-based Strategas Research Partners, told clients in a report.

Wall Street pros noted that business conditions were still supportive of stocks, noting that the economy is strong, the job market robust and corporate earnings growth on the rise following a big tax cut for businesses.

And President Trump, who had been touting the market's record highs, on Monday evening also stressed the economy's soundness, through his press secretary, Sarah Sanders: “The President’s focus is on our long-term economic fundamentals, which remain exceptionally strong, with strengthening U.S. economic growth, historically low unemployment, and increasing wages for American workers."

One firm pointed out that the market has actually performed well when interest rates are rising. While another said the combination of falling stock prices and rising earnings has made the pricey market less expensive.

Investors were once again advised to keep the selloff in perspective. A 401(k) investor who had $100,000 in the Dow at the market peak in late January, still has $91,500 in his or her account even after the recent decline.

"Corrections are a normal part of the investing process and not a reason to sell quality investments," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management in Des Peres, Missouri. ""My best advice for investors with long-term goals like saving for retirement is to turn off the TV and go walk the dog."

More: Here's what to watch for after the Dow's big drop

More: 4 tips following the stock market's 666-point drop

More: Dow plunges 666 points amid rate-hike fears after strong jobs report

Read or Share this story: https://usat.ly/2sczpY1</s>Dow Plunges 1,175, The Biggest Point Drop In History

Enlarge this image toggle caption Richard Drew/AP Richard Drew/AP

Updated at 4:55 p.m. ET

The stock market went on a wild ride again on Monday, with the Dow Jones industrial average closing down 1,175 points, its worst point drop in history. The Dow closed down 4.6 percent and turned negative for the year.

At one point Monday afternoon, the Dow was down 1,579 points — the largest intraday point drop in the history of the index.

"Investors were dumping out of stocks," NPR's Uri Berliner reports. "They were in free fall, something we've seen very little of during the steady bull market since basically 2009. And now we're seeing nerves in the market — some fear."

The previous largest point drop for the Dow was 778 points in September 2008, in the midst of the financial crisis.

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Market participants were focused on the threat of higher inflation after Friday's jobs report showed a pickup in wages, which portends more interest rate increases from the Federal Reserve.

"I think we are in a changing environment where it looks like we're going to have a bit higher inflation and so that has markets on edge," Gus Faucher, chief economist of the PNC Financial Services Group, told NPR's Windsor Johnston. "And I think volatility is likely to be higher in 2018 than it was in 2017."

Analysts suggest that program trading caused the wild sell-off, NPR's John Ydstie reported. "As quickly as the market fell, it recovered much of the ground it had lost as investors remembered the economy and corporate earnings remain strong," he added.

The Dow closed at 24,345.75. Monday's losses came on top of Friday's 666-point drop in the blue-chip index, which resulted in the worst week for the index in two years.

Other major stock indexes also fell Monday, with the S&P; 500 down 113 points, or 4.1 percent, and the Nasdaq down 273 points, or 3.8 percent.

Many financial professionals say this sell-off is healthy for the market. Stock prices letting off steam is "better than if they continue to rise and then pop like a balloon that's overinflated," Berliner says. "But if fear takes over the market then it could get quite ugly."

In the past week, both the Dow and the S&P; 500 have now lost over 5 percent from their recent all-time highs.

Stock indexes around the world also fell Monday, including London's FTSE 100, which closed down 1.5 percent, and Japan's Nikkei, which fell 2.5 percent.</s>NEW YORK: US stocks took a historic tumble on Monday (Tuesday in Manila), with the blue-chip Dow Jones Industrial Average at one point losing almost 1,600 points—the biggest-ever dip during trading—before recovering somewhat to close at 4.6 percent.

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 While sending waves through the global financial system, Monday’s swoon—which ended at 23,923.88, erasing all of this year’s gains—was far from Wall Street’s most devastating. Below are some of its worst crashes and corrections”

On October 19, 1987—almost 58 years to the day after the Wall Street crash at the start of the Great Depression in 1929—the Dow Jones Industrial Average lost a stunning 22.6 percent, falling 508 points to close at 1,738.74.

Analysts blamed the crash—which was the equivalent of more than 5,500 points in today’s terms—on factors that include selling in computerized trade, overvaluation and collapsing oil prices after markets had soared earlier that year.

Stock markets were shut for a calendar week after terror attacks on New York and Washington, D.C. left close to 3,000 people dead.

Wall Street fell precipitously in the week after the attacks, with the Dow sinking 7.1 percent, or 684 points, on September 17—the first day trading resumed.

By noon, financial giants JPMorgan Chase and Citigroup were both 6 percent lower.

At the start of the financial crisis, the Dow suffered what was then its biggest one-day point drop ever on September 29, 2008, losing 7 percent, or 778 points, after lawmakers failed to adopt a $700-billion bailout plan, erasing more than $1 trillion in market value.

Investors dumped stocks on fears Congress would not be able to pass a rescue plan to unfreeze US credit markets, with banks hoarding cash as the effects of the subprime crisis cascaded through the financial system.

Wall Street got a serious case of the jitters the day after British voters’ shock decision to exit the European Union.

On June 24, 2016, amid uncertainty of the economic consequences of Britain’s secession, all three major indices erased year-to-date gains by falling more than 3 percent, with the Dow falling 611.21 points, or 3.4 percent, to close at 17,399.86.

The most devastating Wall Street crash occurred over several days in 1929 and preceded the start of the Great Depression. Markets had soared in the 1920s, based to a large extent on deceit, speculation and unsustainable margin-buying, before falling off a cliff.

On October 28, 1929, the Dow fell 12.8 percent, or 38.33 points, the height of the worst financial panic Americans had ever seen, feeding into misery that would last for years.</s>The vicious sell-off continues with the Dow Jones index plunging as Wall Street starts worrying its post-Trump party could be over.

The Dow Jones Industrial Average has plunged by 1,175 points, its biggest single-day drop in history.

When last Friday's results are included, the blue-chip index has plunged by more than 1,800 points in two days — erasing all its 2018 gains.

The US market wipe-out was sparked by a fast rise in interest rates, with US 10-year bond yields reaching a four-year high.

The sell-off extended to the broader S&P 500 which fell by 113 points (or 4.1 per cent) to 2.649.

As for the tech-heavy Nasdaq, it fell 3.8 per cent to 6,968.

Every S&P sector was smashed, with financials (-4.7pc), healthcare (-4.6pc), industrials (-4.5pc) and energy (-4.3pc) being the worst performers.

The sectors with the least losses were utilities and consumer cyclicals, which dropped 1.7 and 3.3 per cent respectively.

Energy stocks like Exxon Mobil tumbled after oil prices fell sharply overnight — with Brent crude down to $US67.50 a barrel

The big banks Citigroup, Goldman Sachs and Bank of America have dropped by up to 2.5 per cent each.

But it was Wells Fargo which fell the hardest — falling by 9.2 per cent, making it the weakest of the 500 stocks in the S&P index.

This was after the Federal Reserve forced Wells Fargo to replace four directors. In addition, the Fed is restricting the bank from getting any larger or richer until its "widespread consumer abuses" are addressed.

With ASX futures down by 45 points, the Australian market is expected to fall.

Today is also a big day for local economic news.

The Reserve Bank board will meet today, and most likely keep interest rates on hold at the record low 1.5 per cent.

Also, the Bureau of Statistics will release its latest retail and international trade figures.

The Australian dollar is continuing to feel some pressure, and has fallen to 78.8 US cents.

However, the local currency held its ground at 56.4 British pence and 63.7 Euro cents.

More to come.</s>US stocks plunged in highly volatile trading on Monday, with the Dow industrials falling nearly 1,600 points during the session, its biggest intraday decline in history, as investors grappled with rising bond yields and potentially firming inflation.



The benchmark S&P 500 and the Dow suffered their biggest percentage drops since August 2011 as a long-awaited pullback from record highs deepened.



The financial, healthcare, and industrial sectors fell the most but declines were spread broadly as all major 11 S&P groups dropped at least 1.7 percent. All 30 of the blue-chip Dow industrial components finished negative.

With Monday’s declines, the S&P 500 erased its gains for 2018 and is now down 0.9 percent in 2018.

Many investors have been bracing for a pullback for months, as the stock market has minted record high after record high with investors encouraged by solid economic data and corporate earnings prospects, the latter bolstered by recently passed US corporate tax cuts.

Friday’s January jobs report sparked worries over inflation and a surge in bond yields, as well as concerns that the Federal Reserve will raise rates at a faster pace than expected.

“The market has had an incredible run,” Michael O’Rourke — the chief market strategist at Greenwich, Connecticut-based JonesTrading — said.

“We have an environment where interest rates are rising. We have a stronger economy so the Fed should continue to tighten ... You’re seeing real changes occur and different investments are adjusting to that,” O‘Rourke said.

The Dow Jones Industrial Average fell 1,175.21 points (4.6 percent) to 24,345.75, the S&P 500 lost 113.19 points (4.10 percent) to 2,648.94, and the Nasdaq Composite dropped 273.42 points (3.78 percent) to 6,967.53.

The S&P 500 ended 7.8 percent down from its record high on Jan. 26, with the Dow down 8.5 percent over that time.

Even with the sharp declines, stocks finished above their lows touched during the session. At one point, the Dow fell 6.3 percent or 1,597 points, the biggest one-day points loss ever, as it breached both the 25,000 and 24,000 levels during trading.

The stock market has climbed to record peaks since US President Donald Trump’s election and remains up 23.8 percent since his victory. Trump has frequently touted the rise of the stock market during his presidency.

As the stock market fell on Monday, the White House said the fundamentals of the US economy are strong.

The CBOE Volatility index — the closely followed measure of expected near-term stock market volatility — jumped 20 points to 30.71, its highest level since August 2015.

Until recently, gains for stocks have come as the market has been relatively subdued, and any declines were met with buyers looking for bargains.

“People who have been buying the dip are now going to be selling the rip,“ Dennis Dick — a proprietary trader at Las Vegas-based Bright Trading LLC — said. ”The psychology of the market changed today. It’ll take a while to get that psychology back.”

About 11.5 billion shares changed hands in US exchanges, well above the 7.6 billion daily average over the last 20 sessions.

Declining issues outnumbered advancing ones on the NYSE by an 8.64-to-1 ratio; on Nasdaq, a 6.92-to-1 ratio favoured decliners.

The S&P 500 posted 1 new 52-week highs and 38 new lows; the Nasdaq Composite recorded 17 new highs and 164 new lows.</s>-1,175 Points! We Just Witnessed The Largest One Day Stock Market Crash Ever by Michael Snyder – The Economic Collapse Blog

The mainstream media seems so surprised that the stock market is crashing, but the truth is that it isn’t a surprise at all. In fact, this crash is way, way overdue. If the Dow Jones industrial average fell another 10,000 points, stock prices would still be overvalued. I have been warning and warning and warning that this would happen, because stock valuations always return to their long-term averages eventually. On Monday, the Dow was down a staggering 1,175 points, which was the largest single day decline that we have ever seen by a very wide margin. In fact, it shattered the old record by nearly 400 points.

Shortly after 3 PM, all hell broke loose on Wall Street. The Dow dropped by more than 800 points in just 10 minutes. At one point on Monday, the Dow was down nearly 1,600 points, but a brief rally cut those losses roughly in half. However, the rally did not last long and stock prices collapsed hard as the market closed. At this moment, the Dow is already down more than 2,200 points from the peak of the market, and we are not too far from officially entering “correction” territory.

Once stocks start falling, it can trigger a massive rush for the exits, and that is what happened on Monday. In particular, investors started to panic once the Dow broke through the 50-day moving average…

Other waves of selling were triggered once the 25,000 and 24,000 barriers on the Dow were breached. In order to protect against losing too much money, many investors have stop losses set at psychologically-important levels. The following comes from MarketWatch…

Markets almost always go down faster than they go up, and once panic begins to spread on Wall Street it doesn’t take much to create a massive stampede.

In the end, this next financial crisis will be far worse than it should have been. The Federal Reserve and other global central banks have endlessly manipulated the financial markets, and they created the biggest financial bubble in human history.

When an irrational financial bubble is growing, it can seem like things are wonderful. But all such bubbles eventually burst, and the bursting of the bubble often does far more damage than the good that was accomplished by the manipulation of the markets.

So was there anything specific that caused the panic on Wall Street on Monday?

Yes, interest rates are rising, but as Bloomberg has noted, there wasn’t really anything noteworthy in the news that triggered the selling…</s>U.S. stocks opened sharply lower Tuesday on the heels of selloffs earlier in the day in Asia and Europe and one day after the Dow Jones Industrial Average shed the most points in one day in its more than 120-year history.

The Dow fell 530 points at the market open and the more broad-based Standard & Poors 500 Index (S&P 500) tumbled 1.3 percent. The technology heavy Nasdaq Composite Index dropped 1.1 percent.

Earlier Tuesday, Asia's benchmark stock indexes collapsed, as Monday's massive selloffs on Wall Street rolled across the globe.

Japan's Nikkei 225 index lost as much seven percent of its value at one point during the trading session, before closing at 21,610 points, a loss of nearly five percent. Hong Kong's Hang Seng index followed suit, dropping just over five percent in its worst trading day since August 2015.

The benchmark indexes in Australia and South Korea also suffered serious losses.

In early Europe trading London's FTSE 100 was down 3.5 percent at 7,081 points.

Asian markets were caught in the ripple effect of Monday's 1,175-point loss on the Dow, marking the biggest point decline in history. The S&P 500 also had a bad day, losing just over four percent to finish at 2,648 points.

The stock market has now lost about a trillion dollars in value since Friday, when the Dow lost 666 points. That drop followed a solid jobs report that showed the U.S. economy adding 200 thousand jobs and wages rising at the fastest pace in a decade. The tighter labor market and rising wages prompted investor fears of higher inflation and the possibility that the U.S. Federal Reserve would raise interest rates faster and higher than they have in recent years.

Analysts who spoke with VOA had been expecting a stock market "correction," a decline of at least 10 percent from the most recent record highs, as a result of the record run-up in stock prices this year.</s>The Dow Jones Industrial Average plummeted 1,175 points by the closing bell on Monday afternoon, erasing its gain for the year, as the market extended a slump that began on Friday.

Stocks took their worst loss in six and a half years and ended a period of record-setting calm for stocks.

Earlier in the day, the Dow briefly plunged nearly 1,600 points, before recouping half that loss within minutes, but its gains for the year were still gone.

The dramatic drop on Monday at one point brought the Dow below 24,000 points. The trading day ended with Dow at 24,345 point, down 4.6 per cent.

The Standard & Poor’s 500 index, the benchmark most professional investors and many index funds use, skidded 113.19 points, or 4.1 per cent, to 2,648.94. That was its biggest loss since August 2011, when investors were fearful about European government debt and the US came close to breaching its debt ceiling.

The Nasdaq composite fell 273.42 points, or 3.8 per cent, to 6,967.53. The Russell 2000 index of smaller-company stocks sank 56.18 points, or 3.6 per cent, for 1,491.09.

The market’s slump began on Friday as investors worried that creeping signs of higher inflation and interest rates could derail the market’s record-setting rally.

'When you have rates moving upwards, typically what happens is that financial conditions tighten, things like bank lending, mortgage lending start to slow and then the economy is at risk of a potential downturn,' said Mona Mahajan, investment strategist with Allianz Global Investors in New York.

The Dow plunged more than 660 points by the time it closed on Friday afternoon.

This fall marked the stock market's worst week in two years.

The last time the index shed this many points in a single day was on August 8, 2011.

As Dow continued sliding, President Donald Trump was in Ohio on Monday praising his recently-passed tax overhaul law and telling workers at a factory near Cincinnati that 'America is once again open for business.'

Trump said the tax cuts are at the center of improving economic conditions.

The stock market has been unusually calm for more than a year. The combination of economic growth in the US and other major economies, low interest rates, and support from central banks meant stocks could keep rising steadily without a lot of bumps along the way. Experts have been warning that that wouldn’t last forever.

David Kelly, the chief global strategist for JPMorgan Asset Management, said the signs of inflation and rising rates are not as bad as they looked, but after the market’s big gains in 2017 and early 2018, stocks were overdue for a drop.

'It’s like a kid at a child’s party who, after an afternoon of cake and ice cream, eats one more cookie and that puts them over the edge,' he said.</s>But are we seeing a stock market crash? What is a crash? And how much has FTSE 100 and Dow Jones lost? The Dow Jones Index suffered a tumultuous 48 hours with a near 1,600 point slide on Monday, its biggest decline since August 2011 when the US’s credit rating was downgraded. Yesterday, the markets opened at 25337.87, but a massive tumble at 3.10pm took it down to lows of 24,148.47. Today that dramatic fall was mirrored by other markets worldwide, with the FTSE suffering a 3.5 percent drop on opening.

Europe was down around 2 percent on average while Japan's Nikkei dived 4.7 percent, its worst fall since November 2016, to four-month lows. Some investors are urging clients not to panic over the Dow crash, saying it’s the market correcting itself after the market surged to record highs last month. Scott Brown, chief economist at Raymond James said: “It is hard to say (if the selloff will deepen today). “A lot of people were surprised by yesterday's action. The sharp drop in the afternoon seemed to be mainly programmed trading.” "These kinds of corrections are a normal process. Where the bottom is I don't know but the fundamentals haven't changed."

A stock market crash is a sudden plunge in stock prices, driven by underlying economic factors or catastrophic events but often fuelled by public panic. History has several notable stock market crashes - perhaps the most famous being the Wall Street Crash of 1929, which led to a 13 percent and 12 percent crash over two days - and ultimately, the Great Depression of the 1930s. More recently, Black Monday - known as Black Tuesday in the UK because of time differences - references the global markets crash on October 19, 1987.

In 2008, the global financial crisis was caused by the implosion of the subprime mortgage market in the USA. The Dow Jones Industrial Average had 80 percent of its value wiped off after the economy began contracting and investors lost confidence. However, some economists are saying this week’s falls are a stock market correction - not a crash. A stock market correction is when prices fall at least 10 percent from their highs but the 1,100 point drop in the Dow Jones yesterday was less than 5 percent.
The Wall Street stock market sheds 4.6% of its value, with the Dow Jones Industrial Average dropping a record 1,175 points at close. At one point during the day, the benchmark index loses a record 1,579 points.