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List of stock market crashes and bear markets

From Wikipedia, the free encyclopedia

This is a list of stock market crashes and bear markets. The difference between the two relies on speed (how fast declines occur) and length (how long they last). Stock market crashes are quick and brief, while bear markets are slow and prolonged. Those two do not always happen within the same decline.

Table

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Name Date Country Causes Ref
Tulip mania Bubble 1637  Dutch Republic A bubble (1633–37) in the Dutch Republic during which contracts for bulbs of tulips reached extraordinarily high prices, and suddenly collapsed. [1]
The Mississippi Bubble 1720  Kingdom of France Banque Royale by John Law stopped payments of its note in exchange for specie and as result caused economic collapse in France.
South Sea Bubble of 1720 1720  UK Affected early European stock markets, during early days of chartered joint stock companies.
Bengal Bubble of 1769 1769  UK Primarily caused by the British East India Company, whose shares fell from £276 in December 1768 to £122 in 1784.
Crisis of 1772 1772  UK USA
Financial Crisis of 1791–92 1791  USA Shares of First bank of US boom and bust in Aug and Sept 1791. Groundwork of Alexander Hamilton's cooperation with the Bank of New York to end this event would be crucial in ending the Panic of 1792 next year.
Panic of 1796–1797 1796  UK USA A series of downturns in Atlantic credit markets led to broader commercial downturns in Great Britain and the United States.
Panic of 1819 1819  USA
Panic of 1825 1825  UK
Panic of 1837 10 May 1837  USA
Panic of 1847 1847  UK
Panic of 1857 1857  USA
Panic of 1866 1866  UK
Black Friday 24 Sep 1869  USA
Panic of 1873 9 May 1873 Initiated the Long Depression in the United States and much of Europe.
Paris Bourse crash of 1882 19 Jan 1882  France
Panic of 1884 1884
Encilhamento 1890  Brazil Lasting 3 years, 1890–1893, a boom and bust process that boomed in late 1880s and burst on early 1890s, causing a collapse in the Brazilian economy and aggravating an already unstable political situation. [2][3][4][5]
Panic of 1893 1893  USA
Panic of 1896 1896  USA
Panic of 1901 17 May 1901  USA Lasting 3 years, the market was spooked by the assassination of President William McKinley in 1901, coupled with a severe drought later the same year.
Panic of 1907 Oct 1907  USA Lasting over a year, markets took fright after U.S. President Theodore Roosevelt had threatened to rein in the monopolies that flourished in various industrial sectors, notably railways.
Wall Street Crash of 1929 24 Oct 1929  USA Lasting over 4 years, the bursting of the speculative bubble in shares led to further selling as people who had borrowed money to buy shares had to cash them in, when their loans were called in. Also called the Great Crash or the Wall Street Crash, leading to the Great Depression.
Recession of 1937–1938 1937  USA Lasting around a year, this share price fall was triggered by an economic recession within the Great Depression and doubts about the effectiveness of Franklin D. Roosevelt's New Deal policy.
Kennedy Slide of 1962 28 May 1962  USA Also known as the 'Flash Crash of 1962'. [6]
Brazilian Markets Crash of 1971 Jul 1971  Brazil Lasting through the 1970s and early-1980s, this was the end of a boom that started in 1969, compounded by the 1970s energy crisis coupled with early 1980s Latin American debt crisis. [7][8][9]
1973–1974 stock market crash Jan 1973  UK Lasting 23 months, dramatic rise in oil prices, the miners' strike and the downfall of the Heath government.
Souk Al-Manakh stock market crash Aug 1982  Kuwait
Black Monday 19 Oct 1987  USA Infamous stock market crash that represented the greatest one-day percentage decline in U.S. stock market history, culminating in a bear market after a more than 20% plunge in the S&P 500 and Dow Jones Industrial Average. Among the primary causes of the chaos were program trading and illiquidity, both of which fueled the vicious decline for the day as stocks continued lower even as volume grew lighter. Today, circuit breakers are in place to prevent a repeat of Black Monday. After a 7% drop, trading would be suspended for 15 minutes, with the same 15 minute suspension kicking in after a 13% drop. However, in the event of a 20% drop, trading would be shut down for the remainder of the day.
Rio de Janeiro Stock Exchange Crash Jun 1989  Brazil Rio de Janeiro Stock Exchange Crash, due to its weak internal controls and absence of credit discipline, that led to its collapse, and from which it never recovered. [10][11][12]
Friday the 13th mini-crash 13 Oct 1989  USA Failed leveraged buyout of United Airlines causes crash.
Early 1990s recession Jul 1990  USA Iraq invaded Kuwait in August 1990, causing oil prices to increase. The Dow Jones Industrial Average dropped 18% in three months, from 2,911.63 on July 3 to 2,381.99 on October 16, 1990. This recession lasted approximately 8 months.
Japanese asset price bubble 1991  Japan Lasting approximately twenty years, through at least the end of 2011, share and property price bubble bursts and turns into a long deflationary recession. Some of the key economic events during the collapse of the Japanese asset price bubble include the 1997 Asian financial crisis and the Dot-com bubble. In addition, more recent economic events, such as the late-2000s financial crisis and August 2011 stock markets fall have prolonged this period.
Black Wednesday 16 Sep 1992  UK The Conservative government was forced to withdraw the pound sterling from the European Exchange Rate Mechanism (ERM) after they were unable to keep sterling above its agreed lower limit.
1997 Asian financial crisis 2 Jul 1997  Thailand  Hong Kong  Philippines  South Korea  Indonesia Investors deserted emerging Asian shares, including an overheated Hong Kong stock market. Crashes occur in Thailand, Indonesia, South Korea, Philippines, and elsewhere, reaching a climax in the October 27, 1997 mini-crash.
October 27, 1997, mini-crash 27 Oct 1997 Global stock market crash that was caused by an economic crisis in Asia.
1998 Russian financial crisis 17 Aug 1998  Russia The Russian government devalues the ruble, defaults on domestic debt, and declares a moratorium on payment to foreign creditors.
Dot-com bubble 10 Mar 2000  USA Collapse of a technology bubble.
Economic effects of the September 11 attacks 11 Sep 2001 The September 11 attacks caused global stock markets to drop sharply. The attacks themselves caused approximately $40 billion in insurance losses, making it one of the largest insured events ever.
Stock market downturn of 2002 9 Oct 2002 Downturn in stock prices during 2002 in stock exchanges across the United States, Canada, Asia, and Europe. After recovering from lows reached following the September 11 attacks, indices slid steadily starting in March 2002, with dramatic declines in July and September leading to lows last reached in 1997 and 1998. See stock market downturn of 2002.
Chinese stock bubble of 2007 27 Feb 2007  China The SSE Composite Index of the Shanghai Stock Exchange tumbles 9% from unexpected selloffs, the largest drop in 10 years, triggering major drops in worldwide stock markets. [13][14][15]
United States bear market of 2007–2009 11 Oct 2007  USA From their peaks in October 2007 until their closing lows in early March 2009, the Dow Jones Industrial Average, Nasdaq Composite and S&P 500 all suffered declines of over 50%, marking the worst stock market crash since the Great Depression era. [16][17]
Financial crisis of 2007–2008 16 Sep 2008  USA On September 16, 2008, failures of large financial institutions in the United States, due primarily to exposure of securities of packaged subprime loans and credit default swaps issued to insure these loans and their issuers, rapidly devolved into a global crisis resulting in a number of bank failures in Europe and sharp reductions in the value of equities (stock) and commodities worldwide. The failure of banks in Iceland resulted in a devaluation of the Icelandic króna and threatened the government with bankruptcy. Iceland was able to secure an emergency loan from the IMF in November. Later on, U.S. President George W. Bush signs the Emergency Economic Stabilization Act into law, creating a Troubled Asset Relief Program (TARP) to purchase failing bank assets. Had disastrous effects on the world economy along with world trade. [18][19]
2009 Dubai debt standstill 27 Nov 2009  UAE Dubai requested a debt deferment following its massive renovation and development projects, as well as the Great Recession. The announcement caused global stock markets to drop. [20]
European sovereign debt crisis 27 Apr 2010  Europe Standard & Poor's downgraded Greece's sovereign credit rating to junk four days after the activation of a €45-billion EU–IMF bailout, triggering the decline of stock markets worldwide and of the Euro's value, and furthering a European sovereign debt crisis. [21][22][23]
2010 flash crash 6 May 2010  USA The Dow Jones Industrial Average suffered its worst intra-day point loss, dropping nearly 1,000 points before partially recovering. [24]
August 2011 stock markets fall 1 Aug 2011  USA S&P 500 entered a short-lived bear market between 2 May 2011 (intraday high: 1,370.58) and 4 October 2011 (intraday low: 1,074.77), a decline of 21.58%. The stock market rebounded thereafter and ended the year flat. [25][26][27]
2015–16 Chinese stock market crash 12 Jun 2015  China The Chinese stock market crashed in June and continued falling in July and August. In January 2016, the market also experienced a steep sell-off which set off a global rout. [28][29][30][31][32][33]
2015–2016 stock market selloff 18 Aug 2015  USA The Dow Jones fell 588 points during a two-day period, 1,300 points from August 18–21. On Monday, August 24, world stock markets were down substantially, wiping out all gains made in 2015, with interlinked drops in commodities such as oil, which hit a six-year price low, copper, and most Asian currencies - with exception of the Japanese yen - losing value against the United States dollar. With this plunge, an estimated ten trillion dollars had been wiped off the books on global markets since June 3. [34][35][36]
2018 cryptocurrency crash 20 Sep 2018 The S&P 500 index peaked at 2,930 on its September 20 close and dropped 19.73% to 2,351 by Christmas Eve. Bitcoin price peaked on 17 Dec '17, then fell 45% on 22nd Dec '17. The DJIA falls 18.78% during roughly the same period. Shanghai Composite dropped to a four-year low, escalating their economic downturn since the 2015 recession. [37][38]
2020 stock market crash 24 Feb 2020 The S&P 500 index dropped 34%, 1145 points, at its peak of 3386 on February 19 to 2237 on March 23. This crash was part of a worldwide recession caused by the COVID-19 lockdowns. [39][40][41]
2022 stock market decline 3 Jan 2022 The S&P 500 index peaked at 4,796 on its January 3 close and dropped 27.55% to 3,498 by October 2022. The DJIA fell 18.78% since its January 4 high. Nasdaq Composite fell 33.70% from its November 19 high. [42][43]
2022 Russian stock market crash 16 Feb 2022  Russia As a reaction to the upcoming Russian invasion in Ukraine, the MOEX Index fell 43.58% in four trading days. In response, the markets were closed for a month by the Central Bank of Russia to prevent even deeper decline. After re-opening on March 24, the index partially recovered but was still down roughly 40% compared to before the invasion. [44]
2024 China stock market crash 2 February 2024  China The Shanghai Composite Index plummeted from a high of 3703 in September 2021 to 2730 on February 2, 2024, marking a 26.3% decline ahead of the Chinese New Year. The government swiftly intervened in the stock market following the crash by prohibiting short selling and reshuffling government officials. These actions were prompted by China's sluggish economic recovery following the COVID-19 pandemic and a downturn in the real estate sector. [45]

See also

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Notes

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  1. ^ Dash, Mike "Tulipomania: The Story of the World's Most Coveted Flower & the Extraordinary Passions It Aroused" 2001
  2. ^ James D. Henderson, Helen Delpar & Maurice P. Brungardt "A Reference Guide to Latin American History" Richard Weldon Editor – M.E.Sharpe Inc. 2000, ISBN I563247445 page 172, 2nd column, "1890" (2nd paragraph)
  3. ^ Jeffrey D. Needell; "A Tropical Belle Epoque: Elite Culture and Society in Turn-of-the-Century" Cambridge University Press 1987 Pages 10 & 12
  4. ^ Gail D. Triner; "Banking and economic development: Brazil, 1889–1930" Palgrave™ 2000 ISBN 0-312-23399-X Pages 44–74
  5. ^ Viscount of Taunay; "O Encilhamento; scenas contemporaneas da Bolsa do Rio de Janeiro em 1890, 1891 e 1892" (in Portuguese) ("The Encilhamento: contemporary scenes of Rio Stock Exchange in 1890, 1891 & 1892") Editora Melhoramentos, Rio 1893
  6. ^ "Back to the Future: Lessons From the Forgotten 'Flash Crash' of 1962"
  7. ^ Gary Previts, Peter Walton & Peter Wolnizer "A Global History of Accounting, Financial Reporting And Public Policy; Americas – Volume 14B" The University of Sydney/The Accounting Foundation, Emerald Group Publishing Limited 2011 ISBN 978-0-85724-811-4 Page 41, from the last paragraph
  8. ^ Detailed PDF Archived 2012-12-03 at the Wayback Machine Academic work about the subject (in Portuguese) UNICAMP June 2007
  9. ^ Marta Barcellos & Simone Azevedo; "Histórias do Mercado de Capitais no Brasil" ("Histories of Financial Markets in Brazil") (in Portuguese) Campus Elsevier Brazil 2011 ISBN 85-352-3994-4 Introduction and Chapter 4
  10. ^ Markham, Jeffrey W. "A Financial History of the United States; Volume III (1970–2001)" M.E.Sharpe 2002 ISBN 0-7656-0730-1 page 147, from last paragraph
  11. ^ Article Archived 2013-10-21 at the Wayback Machine about the decline of Rio Stock Exchange. Last 3 paragraphs are about the 1989 crash
  12. ^ Barcellos & Azevedo 2011, Pages 141–142; 149 to 151, and 154
  13. ^ Chen, Shu-Ching Jean; Kwok, Vivian Wai-yin (27 February 2007). "Black Tuesday In China". Forbes. Retrieved 25 September 2011.
  14. ^ "Share sale knocks Chinese market". BBC News. 27 February 2007. Retrieved 25 September 2011.
  15. ^ Han, Pliny (27 February 2007). "Chinese shares slump sharply, down 8.84%". Xinhua News Agency. Archived from the original on March 2, 2007. Retrieved 25 September 2011.
  16. ^ Browning, E. S. (28 June 2008). "Dow Hits Bear-Market Territory, Signaling Woe for Economy". The Wall Street Journal. Retrieved 25 September 2011.
  17. ^ Korkki, Phyllis (4 March 2007). "A Scary Tuesday Was No Black Monday". The New York Times. Retrieved 25 September 2011.
  18. ^ "IMF approves $2.1bn Iceland loan". BBC News. 20 November 2008. Retrieved 25 September 2011.
  19. ^ Sahadi, Jeanne (4 October 2008). "Bailout is law". CNN. Retrieved 25 September 2011.
  20. ^ Robertson, David (30 November 2009). "Investors face huge losses as debt-ridden Dubai World is abandoned by government". The Times. Retrieved 25 September 2011.
  21. ^ "Greek bonds rated 'junk' by Standard & Poor's". BBC News. 2010-04-27. Retrieved 2010-04-28.
  22. ^ "Greece crisis: Euro markets hit again". BBC News. 2010-04-28. Retrieved 2010-04-28.
  23. ^ "Greece crisis deepens on global market sell-off". CNN. 2010-04-28. Retrieved 2010-04-28.
  24. ^ Moyer, Liz (7 May 2010). "Was The Market Mayhem A Mistake? Maybe Not". Forbes. Retrieved 25 September 2011.
  25. ^ "US Downgrade: An Overview of the Global Debt Crisis". Forex News Now. August 8, 2011. Retrieved March 10, 2020.
  26. ^ "Dow Sinks 500, Worst Day Since Dec. 2008". CNBC. August 4, 2011. Retrieved March 10, 2020.
  27. ^ "Dow plunges after S&P downgrade". CNN. August 8, 2011. Retrieved March 10, 2020.
  28. ^ "Chinese stock market beats Wall Street and FTSE by closing up in 2015". telegraph.co.uk. 2015-12-31.
  29. ^ "Today's Stock Market News and Analysis from Nasdaq.com". nasdaq.com.
  30. ^ Editorial, Reuters (2015-12-31). "Shanghai stocks poised to end 2015 up nearly 10 pct, beating Wall Street". reuters.com. {{cite news}}: |first= has generic name (help)
  31. ^ "Shanghai Composite Index ends year up nearly 10%". atimes.com. 31 December 2015.
  32. ^ Mulligan, Mark (29 July 2015). "Chinese consumers 'laugh off' stock market gyrations". smh.com.au.
  33. ^ Popper, Nathaniel; Gough, Neil (August 23, 2015). "Global Stocks Tumble Further Amid Doubts About China". New York Times. Retrieved August 24, 2015.
  34. ^ Shan Li; Andrea Chang; Paresh Dave (August 21, 2015). "Stock market suffers worst one-day drop since 2008". Los Angeles Times. Retrieved August 24, 2015.
  35. ^ "customRangeStart":1440054000,"customRangeEnd":1440399600,"range":"custom","allowChartStacking":true} "DJI Interactive Stock Quote". Yahoo Finance. Yahoo! Inc. August 24, 2015. Retrieved August 24, 2015.
  36. ^ Popper, Nathaniel; Gough, Neil (August 23, 2015). "Global Stocks Tumble Further Amid Doubts About China". New York Times. Retrieved August 24, 2015.
  37. ^ "We are now in a bear market — here's what that means". CNBC. 2018-12-24.
  38. ^ Bradsher, Keith (January 20, 2019). "China's Economy, by the Numbers, Is Worse Than It Looks". New York Times. Retrieved January 20, 2019.
  39. ^ Watts, William. "Are stocks headed for a bear market? Here's how far they would have to fall as coronavirus-fueled selloff continues". MarketWatch. Retrieved 2020-03-13.
  40. ^ "Coronavirus creates a true 'bear market' for Wall Street". Daily Breeze. 2020-03-12. Retrieved 2020-03-13.
  41. ^ "Bear Market Becomes Official with 1,400-Point Drop amid Coronavirus Fears". National Review. 2020-03-11. Retrieved 2020-03-13.
  42. ^ "The S&P 500 is now in an official bear market, according to S&P Dow Jones Indices". CNBC. 2022-06-13.
  43. ^ Gura, David (June 13, 2022). "Stocks sink, sending the S&P 500 to a bear market". National Public Radio. Retrieved June 14, 2022.
  44. ^ Mark Thompson and Chris Liakos (24 February 2022). "Russian stocks crash 33% and ruble plunges to record low". CNN. Retrieved 2022-08-25.
  45. ^ Economists (2 February 2024). "China's stockmarket nightmare is nowhere near over The situation ought to worry Xi Jinping". Economists. Retrieved 2024-02-07.

References

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