The 1929 Stock Market Crash

The immediate post World War 1 era, was a time of financial prosperity. The US Government began promoting Liberty Bonds, which was the first experience for many Americans of investing, and lots of investors put their money into savings bonds, and/or, company stocks. Also the US Government, gave loans to Europe to repair all of the wars damage.

But after Europe finished repairing from the war, there was too much supply, and too little demand. That’s what started the 1929 Stock Market Crash. The crash lost the equivalent of $396 billion today, which is more than the total cost of World War 1. The 1929 Stock Market Crash destroyed confidence in Wall Street and also started the Great Depression.

The first day of the crash: Black Thursday, 1929

The Dow Jones opened at 305.85. It than immediately fell 11%, signaling a "stock market correction." Wall Street bankers feverishly bought shares to prop the market up. Their strategy worked. By the end of the day, the Dow Jones was down just 2%.

Friday, October 25 thru Saturday, October 26, 1929

The positive momentum continued. Also, the Dow Jones rose 1% to 301.22. On Saturday, a short trading day removed that gain. The Dow Jones closed at 298.97.

Black Monday, October 28, 1929

The Dow Jones fell 13% to 260.64, which is considered a Stock Market Correction.

Black Tuesday, October 29, 1929

The Dow Jones fell 12% to 230.07. Panicked investors sold 16,410,310 shares.

Since 1922, the stock market had gone up by almost 20% per year. Everyone invested. The crash wiped people out. They were forced to sell businesses and cash in their life savings.

Key Events Leading to the Stock Market Crash of 1929