Thursday the 24th October 1929, known as Black Thursday, is generally accepted as the first day of the Wall Street Crash. The day saw panic selling of shares on the New York Stock Exchange on an unprecedented scale, with over 12.8 million being sold and the market’s value plummeting by 11%. The market didn’t return to its pre-crash level until 1954.
Signs of an impending crisis had been identified many months before the crash, with the Federal Reserve warning on the 25th March of the dangers of speculation on the stock market. The warning coincided with a slowing down of the American economy, but investors continued to purchase stocks that gradually pushed the market to a peak of 381.17 points on the 3rd September.
However, in late September many of the larger investors began to sell their shares, and by the middle of October the market was in freefall as more and more people began panicking about the plummeting prices. Although Black Thursday was the first day of large-scale panic selling, the losses were dwarfed by those the following week when around 16 million shares were sold. Within just a few days of trading, $30 billion dollars had been wiped off the stock market. This was the Wall Street Crash. Although the scale of panic selling did slow down, the market continued its downward trajectory for over 2 years, finally reaching an all-time low on the 8th July 1932. By that time the effect of the Great Depression had crept around the world, acting as a catalyst for the world war that was to follow.