Each day, Benzinga takes a look back at a notable market-related moment that occurred on this date.
What Happened? On this day in 1932, the Dow Jones Industrial Average hit its lowest point of the Great Depression.
Where The Market Was: The Dow reached 41.22, and the S&P 500 would have traded at around 5.
What Else Was Going On In The World: In 1932, U.S. unemployment reached 24.1% as the Great Depression ravaged the economy. The British Broadcasting Company (BBC) launched its first experimental public television programming, which included dancing and musical performances and athletic demonstrations.
The average monthly rent in the US was $18.
The Darkest Days Of The Depression: The Roaring 20s was a booming period for Wall Street. From 1920 to 1929, the Dow skyrocketed from 73 to an all-time high of 381.17 on Sept. 3, 1929. Just two months later, the market crash had dropped the Dow back down to under 200.
By the time the Dow hit 41.22 on July 8, 1932, it had given up more than 90% of its value from its all-time highs. The recovery would be a slow process. The Dow finished the 1930s at just 150.24, down 40% on the decade. The 1940s and the onset of World War II would help lift the US out of the Depression, and the Dow finished the decade up 39% to 206.
However, it would take the Dow roughly 25 years to make new inflation-adjusted all-time highs in 1954, completely offsetting the impact of the Depression.
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