Banking and the Stock Market
The Dow industrial average dropped 512.61 points on August 31 and has been volatile since then. Setting aside speculation regarding motivations for the sell-off, people quickly drew comparisons between this episode and the stock-market crash of October 19, 1987, when the Standard and Poor’s (S&P) 500 composite index dropped 25%, and the New York Stock Exchange (NYSE) reported roughly triple the usual daily trade volume.
Suggested citation: “Banking and the Stock Market,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-10, pp. 13, 10.01.1998.