On Friday, the Dow broke a 3-week selling streak, losing more than 2,000 points. This extended period of panicked selling has contributed to worries that the U.S. is headed for another Great Depression. In fact, nearly half of Americans in a CNN poll believe another depression will occur within the next 12 months. How does this drop in the Dow compare to the 1929 stock market crash?
The 2,000 points lost was more than three times the total value of the Dow in 1929. Volume traded was nearly 500 million shares on August 11, which was 41 times more than the record 12.4 million shares traded on Black Thursday, the start of the crash.
But that's because the Dow was much smaller then. The all-time peak was only 381.2 on September 3, 1929 -- compared to the July 8 high of 12,724.71. For that reason, it's better to look at percentages. In the past three weeks, the Dow lost 11% -- more than a market correction. This is only half of what it lost during the four days of the stock market crash. Between the open of Black Thursday and the close of Black Tuesday the following week, the Dow lost 23% of its market value.
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Stunned Wall Street Trader (Credit: Spencer Platt /Getty Images)
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