ĭespite all the economic warning signs and the market breaks in March and May 1929, stocks resumed their advance in June and the gains continued almost unabated until early September 1929 (the Dow Jones average gained more than 20% between June and September). However, the American economy showed ominous signs of trouble: Steel production declined, construction was sluggish, automobile sales went down, and consumers were building up large debts because of easy credit. Mitchell's move brought a temporary halt to the financial crisis, and call money declined from 20 to 8 percent. Mitchell announced that his company, the National City Bank, would provide $25 million in credit to stop the market's slide. ĭespite the inherent risk of speculation, it was widely believed that the stock market would continue to rise forever: on March 25, 1929, after the Federal Reserve warned of excessive speculation, a small crash occurred as investors started to sell stocks at a rapid pace, exposing the market's shaky foundation. Building on post-war optimism, rural Americans migrated to the cities in vast numbers throughout the decade with the hopes of finding a more prosperous life in the ever-growing expansion of America's industrial sector.
The " Roaring Twenties", the decade following World War I that led to the crash, was a time of wealth and excess. The Dow Jones Industrial Average, 1928–1930 The crash, which followed the London Stock Exchange's crash of September, signaled the beginning of the Great Depression. history, and October 29, 1929, called Black Tuesday, when investors traded some 16 million shares on the New York Stock Exchange in a single day. The Great Crash is mostly associated with October 24, 1929, called Black Thursday, the day of the largest sell-off of shares in U.S. It was the most devastating stock market crash in the history of the United States, when taking into consideration the full extent and duration of its aftereffects. It started in September and ended late in October, when share prices on the New York Stock Exchange collapsed. The Wall Street Crash of 1929, also known as the Great Crash, was a major American stock market crash that occurred in the autumn of 1929.
Crowd gathering on Wall Street after the 1929 crashįears of excessive speculation by the Federal Reserve
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