The first major U.S. stock-market crash, beginning on 9 May 1792, is identified as the Panic of 1792.
The panic followed rapid speculation in securities, including the debt of the newly formed United States. William Duer and Alexander Macomb helped fuel aggressive borrowing and trading, while a loose credit environment encouraged speculation. When confidence weakened, defaults spread through the market.
The crisis began in March 1792 and became acute in May. On 9 May, securities prices fell sharply, and the panic threatened the young nation’s financial system. Treasury Secretary Alexander Hamilton responded with measures designed to restore liquidity and confidence, including government purchases of securities and support for banks.
The episode is sometimes confused with later panics, especially the Panic of 1819, which was the first major financial crisis in the United States. In stock-market history, however, the Panic of 1792 is commonly described as the country’s first major securities-market crash.