What was the worst crash in the stock market?

The worst stock market crash happened in 1929. It produced the largest decline from top to bottom (89%) and was a catalyst for the Great Depression.

What was the worst day in stock market history?

On a percentage basis, the worst day in stock market history was on Oct. 19, 1987. The S&P 500 plunged 20.5% while the Dow cratered 22.6%. Meanwhile, the biggest point decline came on March 16, 2020. The Dow fell 2,977 points (12.9%), while the S&P 500 fell 324.9 points (12%).

What was the fastest market crash in history?

The fastest market crash in history came on Oct. 19, 1987. The S&P 500 and Dow Jones Industrial Average each plunged more than 20% in a single day, the biggest single-day percentage decline in history.

Biggest Stock Market Crashes in History

A History of U.S. Stock Market Crashes

By Matthew DiLallo – Updated May 10, 2026 at 1:08 PM EST | Fact-checked by Parker Hicks

Key Points

Stock market crashes often follow debt-fueled economic expansions.
Rapid sell-offs can result from automated trading or external crises.
Significant financial interventions can help accelerate post-crash recoveries.

A stock market crash occurs when stock prices decline significantly. There's no specific definition of a stock market crash, but the term usually applies to periods when major stock market indexes lose more than 10% of their value in a short period.

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Market crashes typically happen without warning, often on the heels of a long bull market run during which stock prices steadily rise. The hallmark of a stock market crash is panic selling by investors who try to quickly liquidate their positions to either curb losses or satisfy a margin call.

Although a stock market crash can occur quickly, many of the market's biggest crashes have had long-lasting, deep effects. Here's a brief look at some of the stock market's most notable crashes.

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Visual timeline of the biggest crashes in stock market history: 1929, 1987, 1999, 2008, 2020. — Image source: The Motley Fool.

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Bank Run

When a large volume of deposits is withdrawn from a bank in a short period of time.

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Foreclosure sign in front of house. — Image source: Getty Images.

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Chart showing the effect of the coronavirus on the economy — Image source: Getty Images.

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The most recent stock market crash occurred in 2020 as the COVID-19 pandemic spread worldwide. During the week of Feb. 24, the Dow Jones Industrial Average and the S&P 500 tumbled 11% and 12%, respectively, marking the biggest weekly declines since the 2008 financial crisis. The Dow would go on to decline by 9.99% on March 12 -- its largest one-day drop since 1987 -- followed by an even deeper plunge of 12.9% on March 16.

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However, unlike with previous crashes -- which took years to recover their previous peaks -- the stock market rebounded quickly, reaching its pre-pandemic peak by May 2020. Fueling the rapid recovery was an enormous amount of stimulus. The Federal Reserve slashed interest rates and injected $1.5 trillion into money markets, while Congress passed a $2.2 trillion aid package at the end of March.

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FAQ on U.S. Stock Market Crashes

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About the Author

Matt DiLallo has been a contributing Motley Fool stock market analyst specializing in covering dividend-paying companies, particularly in the energy and REIT sectors, since 2012. He also covers pre-IPO companies, ETFs, and other investing topics. He holds an MBA from Liberty University.

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@MatthewDiLallo

Matt DiLallo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

A History of U.S. Stock Market Crashes

Key Points

Bank Run

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FAQ on U.S. Stock Market Crashes

What was the worst crash in the stock market?

What was the worst day in stock market history?

What was the fastest market crash in history?

Black Monday crash of 1987

COVID-19 crash of 2020

Related investing topics

Lessons to learn from the biggest stock market crashes in history

FAQ

1929 stock market crash

Dot-com bubble of 1999-2000

Financial crisis of 2008