After198710/9 fell for three consecutive days, the US stock market suddenly plunged. On that day, the Dow Jones index fell by 22.6%, exceeding the record of 1929 during the Great Depression 12.8%. At the same time, the sharp decline in the US stock market led to a decline in global stock prices. 101October 19, London financial times 100 index fell/kloc-0.1%,Germany DAX index fell 3.7%, France CAC index fell 6. 1%. In the Asia-Pacific market, Japan's Nikkei 225 index fell by 2.35% and 14.76% on the 9th and 20th respectively, while Hong Kong's Hang Seng Index fell by 1 1. 1% and 33% on the 9th and 20th respectively.
1987 there are three reasons for the sharp drop in us stocks in June. 1. The interest rate of AP deposits has been continuously raised since June 5438+0987, from 6% at the beginning of the year to 7% in September. On June 10, the United States unexpectedly announced a high trade deficit, further raising market interest rates. Second, the US Congress proposed legislation. The withdrawal of stock market funds was caused by the rise of programmed trading in the 1980s. Institutional investors use portfolio insurance strategy to sell futures and spot at the same time when the market falls, so the market liquidity is insufficient when it falls. Before the plunge of 5438+ 10/9 in June, there were signs of a short-term plunge in Asia and Europe. For example, the Hang Seng Index fell 1 1% on the morning of June 5438+09. Secondly, before the plunge, the US stock market also experienced a five-year super bull market. The pulp 500 index rose more than three times from the end of June to 1982, and rose by 40% in the first seven months of June.