The New York Stock Exchange plunged on a day that would be etched in financial history as Black Thursday, as investors faced sudden and severe losses. The event unfolded against a backdrop of economic optimism earlier in the decade, characterized by rising stock prices and widespread speculation. However, by late October, the market was beginning to show signs of instability. On this fateful day, panic set in as investors feared the implications of over-inflated stock values and a slowing economy.

Trading commenced with a notable stream of sell orders flooding the NYSE floor. By the end of the day, over 12.9 million shares changed hands—an unprecedented volume. Despite efforts from banks and financial institutions to quell the panic by purchasing large amounts of stock to bolster prices, the measures fell short. Investors continued to withdraw from the market, leading to extreme downturns in stock prices.

The events of Black Thursday initiated a chain reaction that would lead to significant economic consequences, culminating in the Wall Street Crash of 1929. The stock market would not recover for many years, and the ensuing depression altered the financial system and regulation of stock markets in the United States. The panic laid bare the vulnerabilities in the financial markets, prompting eventual reforms aimed at preventing such a disaster from happening again.