What 1929 event marked the beginning of the severe U.S. downturn that became the Great Depression?

The Wall Street Crash of 1929 marked the beginning of the severe U.S. downturn that became the Great Depression.

U.S. stock prices had risen dramatically during the 1920s, encouraging speculation and purchases made with borrowed money. In October 1929, confidence collapsed. Major selling began on Black Thursday, October 24, and intensified on Black Monday, October 28, and Black Tuesday, October 29.

The crash destroyed financial wealth, but it did not by itself explain every part of the Great Depression. Bank failures, falling demand, debt, international economic weakness, and restrictive monetary policies deepened the contraction. The stock market’s decline also weakened businesses and households by reducing access to credit and confidence.

A common mix-up is calling the crash itself the entire Great Depression. The crash was a major trigger and symbol; the depression was the much longer economic crisis that followed, lasting through most of the 1930s.