Updated Oct. 29, 2024 at 12:20 p.m.
The New York Stock Exchange crashed in what was later dubbed “Black Tuesday”, beginning the Great Depression, on this day in 1928.
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What led to Black Tuesday?
The Crash of 1929 was the result of a complex set of factors, including excessive speculation in the stock market, overvalued stocks, and economic imbalances. The optimism and bullish sentiment in the market, fueled by easy credit and margin trading, created a bubble that was unsustainable.
What happened on Black Tuesday, October 29, 1929?
On Black Tuesday, the stock market experienced a severe and rapid decline in stock prices. The trading floor of the New York Stock Exchange was overwhelmed with panic selling, leading to a significant loss in stock values. Millions of shares were traded, and investors incurred substantial losses.
What was the link between Black Tuesday and the Great Depression?
The Crash of 1929 and the subsequent Great Depression had enduring consequences. They led to financial regulatory reforms, such as the creation of the Securities and Exchange Commission (SEC) to oversee the stock market. The Great Depression lasted throughout the 1930s and early 1940s. The U.S. economy began to recover during the late 1930s and was significantly aided by the economic mobilization efforts of World War II.