4. Wall Street Crash of 1929
The Wall Street Crash of 1929, also known as the Great Crash, was a major stock market collapse in the United States that began in late October 1929. Over the course of four business days—Black Thursday (October 24) through Black Tuesday (October 29)—the Dow Jones Industrial Average dropped from 305.85 points to 230.07 points, representing a decrease in stock prices of 25 percent. The crash was preceded by a period of rampant speculation, during which millions of people invested their savings or borrowed money to buy stocks, pushing prices to unsustainable levels. Other contributing factors included an increase in interest rates by the Federal Reserve in August 1929 and a mild recession earlier that summer, both of which contributed to gradual declines in stock prices in September and October, eventually leading investors to panic (britannica.com). The immediate aftermath of the crash saw widespread panic selling, leading to significant losses for investors and a loss of confidence in the financial system. The crash marked the beginning of the Great Depression, a severe economic downturn that lasted for several years and had global repercussions.
