Stock Market Crash: 1929 & Black Tuesday – HISTORY – HISTORY

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1. what caused the 1929 stock market crash?
2. black tuesday
3. effects of the 1929 stock market crash: the great depression

The Stock Market Crash of 1929 occurred on October 29, 1929, when Wall Street investors traded some 16 million shares of stock on the New York Stock Exchange in a single day. billions of dollars were lost, killing thousands of investors. In the aftermath of that event, sometimes called “Black Tuesday,” the United States and the rest of the industrialized world spiraled into the Great Depression, the deepest and longest economic recession in the history of the Western industrialized world up to that point.

see: america: the history of us in the vault of history

Reading: When stock market crash

what caused the stock market crash of 1929?

during the 1920s, usa. uu. The stock market expanded rapidly, peaking in August 1929 after a period of wild speculation in the Roaring Twenties. by then, production had already declined and unemployment had risen, leaving inventories well above their real value.

Other causes of the 1929 stock market crash included low wages, a proliferation of debt, a struggling agricultural sector, and a glut of large bank loans that could not be repaid.

did you know? The New York Stock Exchange was founded in 1817, although its origins date back to 1792 when a group of stockbrokers and traders signed a deal under a button on Wall Street.

black tuesday

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Stock prices began to decline in September and early October 1929, and on October 18 a large decline in stock prices began. Panic soon set in and on October 24, Black Thursday, a record 12,894,650 shares were traded. Investment companies and major bankers tried to stabilize the market by buying large blocks of shares, leading to a moderate rally on Friday.

On Monday, however, the storm blew up again and the market went into free fall. Black Monday was followed by Black Tuesday, October 29, 1929, during which stock prices completely collapsed and 16,410,030 shares were traded on the New York Stock Exchange in a single day. billions of dollars were lost, wiping out thousands of investors, and stock prices were delayed for hours because the machinery couldn’t handle the tremendous trading volume.

effects of the 1929 stock market crash: the great depression

After October 29, 1929, stock prices had no choice but to rise, so there was a considerable recovery over the following weeks. Overall, however, prices continued to fall as the United States plunged into the Great Depression, and by 1932, stocks were worth only about 20 percent of their value in the summer of 1929.

The stock market crash of 1929 was not the only cause of the Great Depression, but it acted to hasten the global economic collapse of which it was also a symptom. Stock prices continued to fall until 1932, when the Dow Jones Industrial Average, a widely used benchmark for blue-chip stocks in the United States, closed at 41.22, its lowest value in the 20th century, down 89 percent. under its beak.

By 1933, almost half of America’s banks had failed and unemployment was approaching 15 million people, or 30 percent of the us. uu. staff. The Dow Jones Industrial Average would not return to its pre-1929 heights until November 1954, some 25 years later.

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African Americans were particularly hard hit, as they were the “last hired, first fired.” Women during the Great Depression fared slightly better, as traditionally female jobs of the time, such as teaching and nursing, were more isolated than those dependent on fluctuating markets.

life for the average family during the great depression was difficult. storms and a severe drought in the southern plains ruined crops, causing the area to be nicknamed the Dust Bowl. “okies,” as the fleeing residents were called, moved to the big cities in search of work.

did you know? the great depression helped end prohibition. politicians believed that legalizing alcohol consumption could help create jobs and stimulate the economy.

the relief and reform measures in the new deal programs enacted by the administration of president franklin d. Roosevelt helped mitigate the worst effects of the Great Depression; however, the us the economy would not fully recover until after 1939, when World War II revitalized American industry.

read more: did new deal programs help end the great depression?

see: america, the history of us: bust in the vault of history

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