A Black Tuesday

The Great Depressions: The Stock Market Crash of 1929

A Black Tuesday

On a cloudy October day in 1929, the U.S. stock market crashed, marking the beginning of the Great Depression. The crash was known as "Black Tuesday" and is considered one of the most devastating events in Wall Street history.

The Rise and Fall

In the years leading up to 1929, the stock market had been on a steady upward trend. The Dow Jones Industrial Average, a measure of the performance of 30 large companies, had reached an all-time high on September 3rd, 1929.

However, the market was fueled by speculation and over-optimism, and many investors were buying stocks on margin, meaning they were borrowing money to finance their purchases.

The Crash

On October 24th, 1929, the market began to decline. The selling escalated on October 28th, and on October 29th, Black Tuesday, the stock market crashed.

Some 16 million shares were traded that day, and the Dow Jones Industrial Average fell by 12%. The following day, the market fell by another 11%. By the end of the week, the Dow Jones Industrial Average had lost over 25% of its value.

The Aftermath

The stock market crash of 1929 had a devastating impact on the U.S. economy. The loss of wealth led to a decline in consumer spending, which in turn led to business failures and job losses.

The Great Depression lasted for over a decade, and it had a profound impact on the lives of Americans. The crash also led to a loss of confidence in the financial system and contributed to the rise of the New Deal.