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1969-01 → 2026-10 · 694 monthly reads
News · finance

The biggest finance stories of the last 3 years.

1987 Stock Market Crash: Dow Plunges 508 Points
On October 19, 1987, Black Monday saw the Dow Jones Industrial Average plunge 22.6% (508 points to 1,738.74) and the S&P 500 fall 20.47% (57.86 points to 224.84), wiping out approximately $500 billion in the largest single-day percentage drop in stock market history. The crash capped a three-day slide of 3.8%, 2.4%, and 4.6%, with a record 604 million shares traded—nearly double the prior Friday's volume—and brought the two-day loss to over 26%. The S&P 500 had already lost 9% in the week before. The crash occurred amid a stretched bull market—the Dow had risen over 40% by mid-August 1987 from its August 1982 lows—and was exacerbated by overvalued stocks, program trading (computerized selling as prices fell), currency tensions with Germany over trade deficits, and the Federal Reserve's rate hikes under new chairman Alan Greenspan, who was unreachable on a flight during the crash. Conflicts in the Middle East, including an American attack on Iranian oil platforms, also fueled investor fears over fuel supply disruptions. Some cite President Reagan's distraction due to Nancy Reagan's breast cancer diagnosis. The Federal Reserve supplied liquidity to meet unprecedented demand for credit, the S&P 500 gained 9.10% on October 21, and stocks finished 1987 with a 2% annual gain, bottoming in early December before launching the 1990s bull market; the S&P 500 did not regain its pre-crash high until July 26, 1989. In response, governments implemented trading curbs (circuit breakers) in 1988 to automatically halt trading after certain percentage drops, limiting panic selling.
nytimes.com Oct 19, 2026
Iran war costs US households $2,000 each: Moody's
Seven months into the U.S. war with Iran, launched on February 28, Moody's Analytics chief economist Mark Zandi estimates the conflict has cost the average U.S. household nearly $2,000—$1,100 in higher energy prices, $540 in higher interest rates, and $360 in military costs—with the energy portion growing by $50 a week. Total consumer costs are estimated at $265 billion, while the Pentagon reports $45.1 billion in direct war costs excluding base repairs. Gasoline averaged $4.33 per gallon on Friday, 45% above its prewar level of $2.98, and diesel hit $6.33, up 68% from $3.76; both are slightly below recent peaks of $4.56 and $6.53, respectively. This is the first October with average gas above $4. Home heating oil costs are expected to rise 21% this winter. Airfares are up 22% year-over-year, with domestic tickets averaging $445 in the second quarter, up from $405 in late 2025. The Strait of Hormuz remains dangerous, with 18 commercial ships hit by Iran this month, and Houthi attacks have intensified: a missile struck Saudi Aramco's headquarters, and 16 people were killed at Riyadh's King Khalid International Airport, which remains closed until at least October 17. Consumer confidence has fallen sharply, with only 27% approving of President Trump's economic handling. Wage growth is at a five-year low, real wages are declining, and 30-year fixed mortgage rates have reached 7.4%, adding about $360 in borrowing costs per household. Grocery prices are expected to rise 2.4% this year, below the historical average, as retailers absorb some costs, but experts warn fresh produce and perishables could see faster increases. Footwear prices are up 3.4% year-over-year, with men's shoes rising 4.5%. Transportation costs for goods sold to businesses are up 10.2%, with truck and water freight each up 19.3%, and parcel shipping costs are projected to hit record levels this quarter.
fortune.com Oct 13, 2026
2008 Mortgage Bailout Plan Sent Stocks Surging
On September 19, 2008, the George W. Bush administration unveiled a radical bailout plan to stave off financial catastrophe, proposing a government takeover of a half-trillion dollars or more in worthless mortgages and bad debt held by tottering institutions. The announcement relieved investors, sending stocks surging on Wall Street and globally.
record-bee.com Sep 19, 2026
Trump claims firing of Fed's Lisa Cook; she vows legal fight
President Donald Trump announced he fired Federal Reserve Governor Lisa Cook over alleged mortgage application discrepancies, but Cook rejected the move, stating he lacks legal authority. Cook, the first Black woman on the Fed board, plans to sue, challenging the legality of her removal under the Federal Reserve Act. Markets reacted with volatility, and the incident raises concerns about central bank independence and potential shifts in monetary policy.
cnbc.com Aug 25, 2025
Fed Signals Sustained High Interest Rates Through 2031
The Federal Reserve, under new Chair Kevin Warsh, signals that high interest rates will persist through 2031, with inflation stuck at 3.4–3.7% above the 2% target. A possible final rate hike to just over 4% by December 2026 is expected, with no cuts in 2027. The Fed projects a gradual decline to a 3.2% neutral rate by 2028, but markets bet rates will stay near 4.7–4.8% through 2031 due to structural inflation drivers like trade disruptions and government debt. Mortgage rates are forecast at 6.0–6.8% for the next few years, while savers may see 4.0–4.5% returns on high-yield accounts and CDs. The era of ultra-low borrowing costs is over, urging consumers to pay down variable-rate debt and lock in fixed-rate deals.
noradarealestate.com Oct 12, 2026
US Sticky Inflation Persists in 2026; Oil Shock Resurges
US inflation, which fell from a 9.1% peak in June 2022 to 2.4% by January 2026, rebounded to 4.2% in May and stood at 3.7% in September 2026, driven by sticky services and shelter costs. Services, comprising 60% of the CPI basket, rose 3.1% annually, while shelter inflation stalled at 3.2% since December 2025. A new oil shock from the US war with Iran, which began on 28 February 2026, pushed energy prices up 23.5% in May, with petrol surging 40.5%. Core PCE, the Fed's target, hit 3.1% in September, its highest since May. Wage growth cooled to 3.0%, below inflation, and tariffs added further pressure. Household inflation expectations remained elevated at 4.7%.
admiralmarkets.com Oct 30, 2026
New Forecast Signals Worsening Trumpflation Driven by Tariffs and Iran War
A new Federal Reserve forecast indicates that Trumpflation is worsening, driven by President Trump's tariffs and the Iran war. The New York Fed reports tariffs have boosted goods price inflation by 2.9 percentage points as of February 2026. The Iran war's closure of the Strait of Hormuz has disrupted 20 million barrels of daily petroleum flows, raising gas and diesel prices. The Cleveland Fed's October update shows headline inflation at 3.75%, but core PCE—the Fed's preferred gauge—is rising, forecast to hit 3.13% in October after three months at 3%. This suggests Iran-war-driven inflation is spreading beyond energy into the broader economy, potentially prompting more aggressive Fed rate hikes, a risk for a historically expensive stock market.
aol.com Oct 29, 2026
France may default on debt amid political crisis
France is veering toward a full-blown civil and sovereign debt crisis, with bond yields at 24-year highs and public debt at a record €3.6 trillion (119% of GDP)—the highest since WWII. Moody’s kept France’s credit rating at Aa3 with a negative outlook late Friday, warning that political paralysis and social unrest threaten fiscal stability. A critical 2027 budget vote in the National Assembly aims to reduce the deficit from 5.4% to 5% of GDP, but Moody’s expects it will only cut to 5.2% due to weaker growth and political gridlock, and may be passed by decree. The debt burden is on track to hit 122% next year. Nationwide protests—initially over underfunded education and the cost of living, fueled by soaring fuel prices—have turned violent with looting and arson, dubbed the “Oct. 17 Movement.” Analysts at Macquarie warn of a self-reinforcing cycle: protests pressure the government to increase spending, driving up bond yields and worsening the debt crisis. Far-right Marine Le Pen (tax cuts, retirement age to 62) and far-left Jean-Luc Mélenchon (cancel ECB-held debt) lead presidential polls, and markets fear their policies will deepen the deficit. The ECB faces a dilemma: bailout risks moral hazard, while refusal could trigger default. Moody’s noted France’s average debt maturity of 8.5 years provides some buffer, but the country is highly vulnerable to event risk from geopolitics and domestic instability.
fortune.com Oct 12, 2026
US fiscal crisis looms as debt surges and bond market signals
The U.S. faces a growing fiscal crisis as the national debt surpasses $40 trillion, with the deficit hitting $2 trillion in fiscal 2025. The 10-year Treasury yield reached 5.04%, the highest since 2007, driven by rising debt and inflation. Moody's stripped the U.S. of its AAA rating, joining S&P and Fitch. Net interest payments on the debt reached $970 billion, exceeding defense spending, and are projected to double to $2.1 trillion by 2036. Congress has failed to complete budget processes on time, relying on gimmicks like emergency spending designations and waived PAYGO rules. The CBO warns of a potential fiscal crisis if investor confidence erodes, threatening the dollar's reserve currency status.
fortune.com Oct 04, 2026
September Inflation Forecast Raises Concerns for Wall Street
On Sept. 16, the Federal Reserve raised the federal funds rate by 25 basis points to 3.75%-4.00%, marking only the fourth rate-hiking cycle this century, as inflation remained above the 2% target for 66 months. The Cleveland Fed's Inflation Nowcasting tool projects September headline CPI at 3.57% and PCE at 3.97%, up from August's 3.4% CPI and July's 3.7% PCE. Persistent inflation is driven partly by the Iran war and closure of the Strait of Hormuz, disrupting 20 million barrels of daily petroleum flows, the largest energy supply disruption in modern history, sending gas and diesel prices soaring.
finance.yahoo.com Oct 01, 2026
Global bond sell-off deepens, yields hit multi-year highs
A global bond sell-off deepened Thursday, with the US 30-year Treasury yield hitting 5.5% and the 10-year yield reaching 5.22%, both at multi-decade highs, though BlackRock's Rick Rieder called the move 'not a crisis but an eye-opener.' The 10-year yield had climbed as high as 5.12% on Wednesday, its highest since 2007, while the 30-year touched 5.4% and the 5-year also hit a 2007 high. Yields surged after S&P Global data showed robust US business activity and hot inflation from higher energy prices, with Brent crude settling at $106.60 per barrel. Traders raised bets on a Federal Reserve rate hike in October to 71%, up from 11% a month ago, and Fed officials reinforced that view: New York Fed president John Williams said Thursday it was reasonable to think the Fed may need to raise rates again before year-end, echoing governor Michael Barr's similar comments. The sell-off extended globally, with 10-year yields in France and Germany hitting 15-year highs and Japan's reaching 3.08%, a level not seen since 1996. Analysts said yields are likely to remain elevated due to persistent inflation and the energy shock from the Middle East conflict.
cnn.com Sep 24, 2026
Can Kevin Warsh Change the Federal Reserve?
Federal Reserve Chair Kevin Warsh, in his third FOMC meeting on September 15-16, raised interest rates by a quarter point to 3.75%-4%, the first hike since 2023, amid inflation exceeding the 2% target for over five years. President Trump criticized the unanimous decision, calling the board 'political.' Warsh, who took office earlier this year, launched five task forces covering communications, balance sheet, data, productivity, and inflation. He has already ended long-term policy projections and proposed reducing FOMC meetings from eight to six annually. His reforms face internal debate, with success depending on coalition-building and market confidence.
time.com Sep 19, 2026