Up To Wednesday’s Close, The Stock Had Risen 8
Darline Wolkow
During the 1920s, the U.S. stock market underwent rapid expansion, reaching its peak in August 1929 after a period of wild speculation in the Roaring Twenties. By then, production had already declined and unemployment had risen, leaving stocks in great excess of their real value.
The 1920s had been a time of wealth and excess in the United States of America, and stock prices had risen to unprecedented levels. This encouraged many people to speculate that the market would continue to rise. Investors borrowed money to buy more stocks.
Also on 3 March, due to the Bank of Mexico declining to cut its overnight rate further,[122] Mexican Finance Minister Arturo Herrera Gutiérrez announced a fiscal stimulus program to accelerate government spending.[123] The Federal Open Market Committee lowered the federal funds rate target by 50 basis points with Federal Reserve Chair Powell stating that the central bank "saw a risk to the outlook for the economy and chose to act" and that "the magnitude and persistence of the overall effect [of the outbreak] on the U.S. economy remain highly uncertain".[9][124] At the close of trading on 3 March, European and Asia-Pacific stock markets had mostly risen,[118][125] but the S&P 500, the NASDAQ Composite, and the Dow Jones Industrial Average all fell (with the Dow reversing more than two-thirds of the previous day's gain).[126] Oil futures rose and the yield on 10-year and 30-year U.S. Treasury securities fell to record lows of 0.91% and 1.60% respectively (with the fall below 1% on the 10-year securities occurring for the first time in history).[127][128]
0aad45d008