A loss of 82 points from its last peak. That day a total of 16,410,030 shares of stock was sold. Over a few hours, prices fell so far as to wipe out all the gains that were made up in the last year. The economy was not about to get better yet for the United Stated. The stock market continued to fall and on July, 1932 the Dow Jones dropped to it's lowest point, 40.56. A drop of 89%. This is why the stock market crash that started in 1929 was the worst ever in history. $30 billion disappeared from the American economy.(Morris 11).
Investing in stocks was investing in America, and was encouraged. The stock market grew when new investors entering the market viewed it as an easy way to "get rich quick". The economy was progressing every month and investing money into a company was almost sure to give the stock holder back huge profits. .
An increase in personal savings also allowed for more money to be invested into the stock market. American economy was booming and a lot of money was floating around. Common people in the United States were making enough money to support their families and have some left over to invest and spend. Banks made money more available at lower interest rates to more people. The interest rates were around 6% depending on the bank. Some stock buyers would take out loans from the banks to buy more stock. That is how profitable the stock market was at that time. This was called the "Easy Money Policy".(Coben 204).
Starting from around 1925, industries in the United States were over producing. Business leaders put their profit made back into industry, investing in new machinery, new factories, and more workers. This led to an even great overproduction of goods such as weapons and war goods for World War I. The leading companies were United States Steel, General Electric, United States Industrial Alcohol, and Standard Gas. For this time the circulating money in industries and building of businesses created a "aura of financial soundness".
