On October 27 and 28, 1997, the nation's securities markets fell by a record absolute amount on then-record trading volume. On Monday, October 27, the Dow Jones Industrial Average ("DJIA") declined 554.26 points (7.18%) to close at 7161.15. This represented the tenth largest percentage decline in the index since 1915. October 27 was also the first time that the cross-market trading halt circuit breaker procedures had been used since their adoption in 1988. At 2:36 p.m., the DJIA had declined 350 points, thereby triggering a 30-minute halt on the stock, options, and index futures markets. After trading resumed at 3:06 p.m., prices fell rapidly to reach the 550-point circuit breaker level at 3:30 p.m., thereby ending the trading session 30 minutes prior to the normal stock market close. On Tuesday, October 28, market prices initially resumed their decline before rallying sharply. The DJIA closed up 337.17 points (4.71%) at 7498.32 on then-record share volumes of over a billion shares each on the New York Stock Exchange ("NYSE") and the Nasdaq Stock Market ("Nasdaq")."
Friday, December 28, 2012
Media Coverage of the Dow's "Mini-Crash" on October 27, 1997 (And SEC Report)
The Asian financial crisis set this one off. Watch ABC News' coverage of the October 27, 1997 "mini-crash" below. The Dow fell 7.18% that day. I also found an interesting SEC report on the crash.
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