(MONEY Magazine) – The October 1987 meltdown will be long remembered on Wall Street. Higher interest rates, combined with uncertainties about inflation, the dollar, trade and budget deficits, and the explosive Persian Gulf situation, triggered a dive that wiped out about $500 billion of the market's value. On Black Monday, Oct. 19, the Dow Jones industrial average plunged to close down an incredible 508 points to 1738.74, the largest one-day decline ever. Financial markets around the world reacted with similar huge losses. The Dow, which many said was climbing to 3000, stabilized somewhat to end the month at 1993.53, down 23%. Not all industries suffered equally. The month's best-performing group was ; electric companies, down only 3.5%; the worst was toys, down nearly 42%. In an effort to calm the markets, the Federal Reserve Board immediately increased the money supply, causing a sharp drop in interest rates and a rally in bond prices. For example, yields of 10-year Treasuries fell to 8.93% from 9.61%.

CHART: TEXT NOT AVAILABLE CREDIT: NO CREDIT CAPTION: RATES: DOWN Interest rates in up to 600 savings accounts offered by the 100 largest institutions in the 10 top markets. DESCRIPTION: Interest rate increases and decreases for 600 savings accounts in 10 top markets.

CHART: TEXT NOT AVAILABLE CREDIT: NO CREDIT CAPTION: NO CAPTION DESCRIPTION: Performance of stocks, bonds and economic indicators for 11/87, one month ago, one year ago, and five years ago.

CHART: NOT AVAILABLE CREDIT: NO CREDIT CAPTION: NO CAPTION DESCRIPTION: Information about U.S. market performance, 12-month and 5-year forecasts.