The 1873 United States market panic that began after Jay Cooke and Company failed was the Panic of 1873.
Jay Cooke and Company, a major investment bank that financed railroads and government bonds, suspended operations in September 1873. Its failure exposed the dangers of excessive railroad speculation and helped trigger a banking and stock-market panic in the United States.
The crisis was part of a broader international downturn often called the Long Depression. Financial failures spread through Europe and North America, while railroad construction and investment contracted sharply. The New York Stock Exchange temporarily closed during the panic.
The Panic of 1873 is distinct from the wider financial crisis that began in Europe and the United States, even though the names and dates are closely connected. Some historians use “Long Depression” for the prolonged period after the panic, while “Panic of 1873” identifies the initial financial shock and market failures.