That was the start of the Great Crash, but until the severe phase of the crash in October, many investors regarded the September "Babson Break" as a "healthy correction" and buying opportunity. On October 24 ("Black Thursday"), the market lost 11 percent of its value at the opening bell on very heavy trading.
The huge volume meant that the report of prices on the ticker tape in brokerage offices around the nation was hours late and so investors had no idea what most stocks were actually trading for at the moment, increasing panic.
The market had been on a nine-year run that saw the Dow Jones Industrial Average increase in value tenfold, peaking at 381.17 on September 3, 1929.
The initial September decline was thus called the "Babson Break" in the press.
By May there was also a winter-wheat crop of 560 million bushels ready for harvest in the Mississippi Valley.
What Caused The Wall Street Crash Essay
This oversupply caused a drop in wheat prices so heavy that the net incomes of the farming population from wheat were threatened with extinction.
They chose Richard Whitney, vice president of the Exchange, to act on their behalf. As traders watched, Whitney then placed similar bids on other "blue chip" stocks.
With the bankers' financial resources behind him, Whitney placed a bid to purchase a large block of shares in U. The tactic was similar to one that had ended the Panic of 1907. The Dow Jones Industrial Average recovered, closing with it down only 6.38 points for the day.
The massive volume of stocks traded that day made the ticker continue to run until about p.m.
The market had lost over billion in the space of two days, including billion on October 29.