Black Thursday – October 24th 1929 signalled the start of the Wall Street Crash and the onset of the Great Depression which caused widespread economic turmoil and political upheaval.
Black Thursday was the first large fall in share prices. But, was compounded by huge falls, a couple of days later on Monday 28th and Tuesday 29th.
The decline continued throughout 1930, by July share prices had lost 89% of the value from the September, 1929 peak. This was the lowest the stock market had been since the nineteenth Century. It took until 1954 for shares to regain their 1929 levels.
The Causes of Black Thursday were many, but the main ones were:
- Falling profitability of blue chip firms – a sign the boom years were over
- Wildly overvalued share prices.
- Effect on confidence.
Black Thursday precipitated the great depression