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What happened on Black Thursday in 1929?

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A long line of unemployed men in coats and hats stands outside a soup kitchen in Chicago, with a storefront sign reading Free Soup, Coffee and Doughnuts for the Unemployed. — Great Depression Unemployed men standing in line outside a soup kitchen, Chicago.

Black Thursday, which occurred on October 24, 1929, marked the first day of the stock market crash of 1929 and served as a precursor to the Great Depression.12

Following a period of rampant speculation and a market decline that began in September, panic selling erupted on this day. A record 12.9 million shares were traded, overwhelming the New York Stock Exchange infrastructure; ticker tape machines and telephone lines could not keep up with the volume, leading to delayed reports that further fueled confusion and fear.132

To stabilize the market, major banks and investment firms intervened by purchasing large blocks of stock, which successfully prevented a total collapse by the end of the day. While this effort provided a temporary reprieve, it failed to restore long-term confidence, and the panic resumed the following week on Black Monday and Black Tuesday. The crash ultimately undermined consumer confidence and contributed to a sharp decline in spending and industrial output.123