When Did The Stock Market Crash?

September 17, 2019 | Jamie Hayes

When Did The Stock Market Crash?

The cultural change from the 1950s to the 1960s was gradual. The same is true for the 60s to 70s, 70s to 80s, etc. But between the Roaring 20s and the Dirty 30s, change was drastic and utterly chaotic. The United States went from the Jazz Age to the Great Depression, all thanks to the infamous Stock Market Crash of 1929.

So when exactly did the most devastating stock market crash in the history happen?

Gathering Storm

The warning signs of a crash started appearing in early 1929. At this time, people genuinely believed that stock prices would continue to rise forever. This feeling led to widespread speculation, where people would buy whatever cheap stocks they could find, basing their purchases on the assumption that their stocks would only increase in value.

Disappointed in their children factsShutterstock

As we know today, speculation is not a sound strategy. Back in the Roaring 20s, some savvy economists also started to get a little worried about the seemingly endless speculation. On March 25, 1929, the Federal Reserve issued a warning about excessive speculation. They were onto something. The markets started to wobble.

We're Going To Live Forever

In response to the warning, many investors sold off their stocks and a mini-crash ensued. Signs of the market’s volatility should have been obvious at this point, but stocks quickly recovered and most people still refused to get worried.

One respected economist, a man named Irving Fisher, said, “Stock prices have reached what looks like a permanently high plateau.” Yeah, and the Titanic was “unsinkable." Even after the markets declined in September, people assumed it was just a “healthy correction” to the bull market and that all was well—oh how wrong they were.

Adelaide Hall factsShutterstock

The Beginning of the End

First, on September 20, 1939, the London Stock Exchange crashed when police threw one of the city’s top investors in jail for fraud. People across the pond in the US felt this bombshell keenly. They started to get worried, making the market extremely unstable. Small crashes and booms seemed to happen every other day.

The Wall Street Crash started in earnest on October 24, 1929, now known as Black Thursday. Over the next couple days, investors sold their stocks at an unprecedented rate. So many people were selling that stock tickers couldn’t keep up. This made it take hours for stock prices to update, only increasing the panic and making people sell more.

Near-Death Experiences FactsPixabay

Too Little, Too Late

At this point, the ship was clearly starting to sink, and some of Wall Streets wealthiest bankers tried to act quickly to repair the damage. They started purchasing blue-chip stocks at above market value to restore confidence in the market.

At first, their efforts appeared to bear fruit. It seemed as though the crisis of Black Thursday was averted. Stocks began to rally on Friday the 25th—but it was a bandaid on a bullet hole.

By the 28th, “Black Monday,” the market’s slide continued. Panic built, selling increased, and by the next day, the infamous Black Tuesday, the market was finally doomed. That day, brokers traded around 16 million shares—a record that would stand for four decades. Panic had finally settled in, and Wall Street could do nothing but crumble.

Marion Davies FactsShutterstock

Total Collapse

The crash had occurred. Between October 25 and 28, 1929, the market lost more than $30 billion. It lost $14 billion on Black Tuesday alone.

After that terrible day, the Great Depression began, and the world wouldn’t recover for more than a decade. The Roaring Twenties were a time of unbridled excess and optimism—and little foresight.

It had been a decade-long bender, and the stock market crash was the start of the hangover.

great depression facts new

Sources:  1

More from Factinate

Featured Article

My mom never told me how her best friend died. Years later, I was using her phone when I made an utterly chilling discovery.

Dark Family Secrets

Dark Family Secrets Exposed

Nothing stays hidden forever—and these dark family secrets are proof that when the truth comes out, it can range from devastating to utterly chilling.
April 8, 2020 Samantha Henman

Featured Article

Madame de Pompadour was the alluring chief mistress of King Louis XV, but few people know her dark history—or the chilling secret shared by her and Louis.

Madame de Pompadour Facts

Entrancing Facts About Madame de Pompadour, France's Most Powerful Mistress

Madame de Pompadour was the alluring chief mistress of King Louis XV, but few people know her dark history—or the chilling secret shared by her and Louis.
December 7, 2018 Kyle Climans

More from Factinate

Featured Article

I tried to get my ex-wife served with divorce papers. I knew that she was going to take it badly, but I had no idea about the insane lengths she would go to just to get revenge and mess with my life.

These People Got Genius Revenges

When someone really pushes our buttons, we'd like to think that we'd hold our head high and turn the other cheek, but revenge is so, so sweet.
April 22, 2020 Scott Mazza

Featured Article

Catherine of Aragon is now infamous as King Henry VIII’s rejected queen—but few people know her even darker history.

Catherine of Aragon Facts

Tragic Facts About Catherine of Aragon, Henry VIII’s First Wife

Catherine of Aragon is now infamous as King Henry VIII’s rejected queen—but very few people know her even darker history.
June 7, 2018 Christine Tran

Dear reader,

Want to tell us to write facts on a topic? We’re always looking for your input! Please reach out to us to let us know what you’re interested in reading. Your suggestions can be as general or specific as you like, from “Life” to “Compact Cars and Trucks” to “A Subspecies of Capybara Called Hydrochoerus Isthmius.” We’ll get our writers on it because we want to create articles on the topics you’re interested in. Please submit feedback to contribute@factinate.com. Thanks for your time!

Do you question the accuracy of a fact you just read? At Factinate, we’re dedicated to getting things right. Our credibility is the turbo-charged engine of our success. We want our readers to trust us. Our editors are instructed to fact check thoroughly, including finding at least three references for each fact. However, despite our best efforts, we sometimes miss the mark. When we do, we depend on our loyal, helpful readers to point out how we can do better. Please let us know if a fact we’ve published is inaccurate (or even if you just suspect it’s inaccurate) by reaching out to us at contribute@factinate.com. Thanks for your help!

Warmest regards,

The Factinate team

Want to learn something new every day?

Join thousands of others and start your morning with our Fact Of The Day newsletter.

Thank you!

Error, please try again.