The 5 Biggest Stock Market Crashes of All Time

"Welcome, history buffs and finance enthusiasts! Today, we’re diving into the five most devastating stock market crashes that shook the world. From Wall Street to global economies, these events left lasting scars—and lessons. Want to stay ahead of the next big crash? Subscribe now for more insights into markets, history, and what makes the financial

"First up, the granddaddy of them all: the Wall Street Crash of 1929. It began on October 24—Black Thursday—when panic selling gripped the New York Stock Exchange. By October 29, Black Tuesday, the Dow Jones Industrial Average had plummeted 23% in just two days. Overconfident investors, fueled by margin debt and speculative buying, had driven stocks to unsustainable heights. When reality hit, $14 billion in market value—about $200 billion today—vanished in a week. Banks failed, businesses collapsed, and the Great Depression followed, plunging millions into poverty. This crash exposed the dangers of unchecked speculation and led to reforms like the SEC. It’s a stark reminder: what goes up too fast can come down even faster."

"Fast forward to October 19, 1987—Black Monday. The Dow Jones dropped a jaw-dropping 22.6% in a single day, the largest one-day percentage loss in history. Unlike 1929, this crash wasn’t tied to a clear economic collapse but to a perfect storm of factors. Program trading, where computers automatically sold stocks as prices fell, amplified the chaos. Overvalued markets and investor panic didn’t help either. The S&P 500 lost $500 billion in value, and global markets followed suit. Surprisingly, the economy didn’t tank long-term—recovery came within months. Still, Black Monday sparked circuit breakers, those emergency halts you see today when markets plunge too fast. Technology can be a double-edged sword!"

"Next, the Dot-Com Bubble of the late '90s. Tech stocks soared as investors poured money into internet startups, many with no profits—or even products! The NASDAQ peaked at 5,048 on March 10, 2000, then crashed hard. By October 2002, it had fallen 78%, wiping out $5 trillion in market value. Pets.com, Webvan—remember those? Gone. Overhype and irrational exuberance fueled the bubble, and when reality set in, the fallout was brutal. Layoffs hit Silicon Valley, and the U.S. slipped into a mild recession. This crash taught us that innovation is great, but profits still matter. It’s a classic tale of hype outpacing fundamentals."

"Then there’s 2008—the crash that still haunts us. It kicked off when the U.S. housing bubble burst, fueled by subprime mortgages and risky financial products like mortgage-backed securities. On September 29, the Dow dropped 777 points, its biggest single-day point loss ever, as Lehman Brothers collapsed and panic spread. The S&P 500 fell 47% from its 2007 peak, erasing $16 trillion globally. Banks froze, unemployment soared, and governments bailed out giants like AIG. This wasn’t just a market crash—it was a systemic failure. Tighter regulations followed, but the scars linger in foreclosed homes and lost savings. Leverage and greed? Deadly combo."

"Finally, the COVID-19 crash of 2020. As the pandemic hit, markets went into freefall. On March 16, the Dow dropped 2,997 points—12.9%—its worst day since 1987. Lockdowns, uncertainty, and oil price wars triggered a 34% plunge in the S&P 500 from its February peak. Trillions evaporated as investors fled to safety. But here’s the twist: massive stimulus from governments and central banks sparked a rapid rebound. By August, markets hit new highs, even as Main Street struggled. It showed us how disconnected stocks can be from reality—and how fast fear can turn to frenzy."

"From 1929 to 2020, these crashes remind us: markets are wild rides. Thanks for joining me—hit that subscribe button for more deep dives into the forces shaping our world!"