Which U.S. stock-market crash in 1929 began a decline in the Dow that eventually reached about 89%?

The Wall Street Crash of 1929 began the decline in the Dow Jones Industrial Average that eventually reached about 89% from its peak.

The Dow reached a high of 381.17 on September 3, 1929. After a speculative boom, prices fell through a series of dramatic sessions in October, including Black Thursday, Black Monday and Black Tuesday. The market continued falling for years and reached its low on July 8, 1932.

The collapse was intensified by buying stocks on margin, which allowed investors to control large positions with borrowed money. When prices fell, margin calls forced additional selling. Economic weakness, bank failures, reduced consumption and international debt problems magnified the damage.

The crash and the Great Depression are closely linked but not identical. The crash describes the stock-market collapse, while the Great Depression was the much broader worldwide economic contraction that followed. The Dow eventually recovered its September 1929 closing high in November 1954, more than 25 years later.