Stock Market Crash of 1929
During the Roaring Twenties, the U.S. economy and stock market expanded rapidly, while buying stocks on margin let investors take on greater risk. The Dow Jones Industrial Average reached 381.17 on September 3, 1929. After the sharp selloffs known as Black Thursday, Black Monday, and Black Tuesday, it continued falling until July 8, 1932, when it closed at 41.22—about 89% below its peak. The Wall Street crash of 1929, also called the Great Crash, was a major turning point at the beginning of the Great Depression, though it was not the only cause of the economic crisis. This chart places the 1929 stock market crash in the context of the Roaring Twenties boom and the prolonged decline that followed.
Source: Federal Reserve History — Stock Market Crash of 1929
The Roaring Twenties and the Dow
The Roaring Twenties roared loudest and longest on the New York Stock Exchange. Share prices rose to unprecedented heights. The Dow Jones Industrial Average increased six-fold from sixty-three in August 1921 to 381 in September 1929.
Source: Federal Reserve History — Stock Market Crash of 1929
1929 Crash Timeline
| Date | Event | Consequence |
|---|---|---|
| August 1921–September 1929 | The Dow rose from about 63 to 381 during the Roaring Twenties. | The market’s long rise set the stage for the historic peak before the crash. |
| September 3, 1929 | The Dow closed at its peak of 381.17. | This became the reference point for measuring the subsequent decline. |
| October 24, 1929 | Black Thursday | Heavy selling marked the start of the late-October crash. |
| October 28, 1929 | Black Monday | The Dow suffered another sharp decline as selling intensified. |
| October 29, 1929 | Black Tuesday | A further selloff deepened the crash and shook confidence in the market. |
| July 8, 1932 | The Dow closed at 41.22. | It had fallen about 89% from its September 1929 peak. |
| By 1933 | Bank failures and unemployment had spread across the country. | The financial crisis had become part of a much wider economic depression. |
| November 1954 | The Dow regained its 1929 closing high. | The recovery took more than 25 years from the 1929 peak. |
The Crash and Its Consequences
By 1933, nearly half of America’s banks had failed, and unemployment was approaching 15 million people, or 30 percent of the workforce. It would take World War II, and the massive level of armaments production taken on by the United States, to finally bring the country out of the Depression after a decade of suffering.