When Is a Stock Market Crash Not Really a Stock Market Crash?

The word “crash” has been getting used a LOT recently with regard to the stock market — i.e., “the stock market crash” or “the stock market is crashing” or “the market is falling off a cliff.”

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But…if Black Monday in 1987 and the Flash Crash in 2010 are what actual market crashes and “falling off a cliff” look like, then is the U.S. stock market really crashing today in June 2022?

Spoiler alert: No, the U.S. stock market is NOT crashing today in 2022. (At least, not yet.)

First, let’s define our terms, using reputable sources.

1. A stock market crash is when a broad index or many related indices experience rapid, double-digit declines. There is no specific percentage decline that precisely defines a stock market crash — unlike bull and bear markets — but participants generally know one when they see one. (Bankrate.com: https://www.bankrate.com/glossary/s/stock-market-crash/ )
2. A stock market crash is a sudden dramatic decline of stock prices across a major cross-section of a stock market, resulting in a significant loss of paper wealth. (Wikipedia: https://en.wikipedia.org/wiki/Stock_market_crash )
3. A stock market crash happens when there is a sudden, unanticipated and significant drop in stock prices. The fall is rapid and usually ignited by a single cataclysmic event that sets off a series of smaller events. (SeekingAlpha: https://seekingalpha.com/article/4482670-what-is-stock-market-crash )