Black Monday: When Stock Markets Fell
On Monday, October 19, 1987, stock prices in the United States fell so quickly that the day became known as Black Monday. By the time trading ended, a widely watched measure of the market, the Dow Jones Industrial Average, had dropped 22.6 percent. It remains the largest one-day percentage decline in that measure’s history.
The crash startled investors around the world. Yet the story is about more than a single frightening day. It shows how trading decisions, technology, and fear can interact—and why a central bank may step in when the financial system is under stress.
What was falling?
A stock is a share of ownership in a company. Its price changes as buyers and sellers agree on what that share is worth. People may buy stocks because they expect a company to grow or because they hope to sell their shares later at a higher price. But prices can fall as well as rise, and no one is guaranteed a profit.
- investors:
- People or organizations that put money into something in hopes of a return.
- accelerated:
- Increased in speed.
- reinforced:
- Made stronger or more intense.
- exposure:
- The possibility of being affected by a risk or loss.
- transactions:
- Exchanges or deals, such as purchases and sales.
- lag:
- To fall behind or be delayed.
- participants:
- People or groups taking part in an activity.
- severe:
- Very serious or extreme.
One passage, many ways to practice
Reading-skill questions, word work and writing prompts — all built from this text.
Main Idea
Identify the central idea and explain how important details develop it.
Context Clues
Use clues in the passage to work out what words mean. A separate printable Vocabulary worksheet is also available.
Summarize
Select, organize, and restate the most important information without adding opinion.
Purpose
Analyze what the author aims to do and how choices serve audience and purpose.
Structure
Analyze how sections and organizational choices build the text's ideas or effects.
Vocabulary
Practice words from the passage with a printable worksheet.
Writing Prompts
Use the passage as a springboard for short written responses, from personal reflection to evidence-based arguments.
Fix the Sentence
Practice editing sentences drawn from this passage with a printable worksheet.
Ready to use this passage in class?
Start free with the Mixed worksheet and 3 PDF downloads each week. Focused skill sets depend on plan.
Preview questions from this passageShowHide
- 1Why does the Dow’s 22.6 percent decline not mean that every stock fell by that amount?
- 2How did conditions before October 19 contribute to investors’ uncertainty?
You Might Also Like
About this explanatory article passage for Middle School
“Black Monday: When Stock Markets Fell” is a explanatory article reading passage about The stock market crash of 1987, written for Middle School. It takes about 6 minutes to read (892 words) and comes with an interactive quiz and a printable worksheet with comprehension questions and an answer key.