The first major U.S. stock-market crash, occurring in 1792 after speculation and credit expansion, was the Panic of 1792.
The episode centered on securities traded in New York and Philadelphia. Speculator William Duer and others borrowed heavily to buy government securities and bank shares, helping push prices upward. When confidence weakened and lenders demanded repayment, forced selling spread through the young financial system.
Alexander Hamilton, the U.S. Treasury secretary, responded by arranging government purchases of securities and encouraging banks to provide liquidity. His intervention helped stabilize markets and is an early example of a central government attempting to contain a financial panic.
The crisis also contributed to the creation of the Buttonwood-era New York financial institutions that later developed into the New York Stock Exchange. It is distinct from the later Panics of 1819, 1837, and 1907.