Black Friday Stock Market Crash Overview By The Investopedia Team Full Bio Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Learn about our editorial policies Updated October 31, 2022 Reviewed by Khadija Khartit Reviewed by Khadija Khartit Full Bio Khadija Khartit is a strategy, investment, and funding expert, and an educator of fintech and strategic finance in top universities. She has been an investor, entrepreneur, and advisor for more than 25 years. She is a FINRA Series 7, 63, and 66 license holder. Learn about our Financial Review Board Part of the Series Guide to Stock Market Crashes Understanding Stock Market Crashes and Their Impact What Happens in a Crash October: The Month of Market Crashes? How Do Investors Lose Money When the Stock Market Crashes? Timeline of U.S. Stock Market Crashes October Effect Financial Crisis Circuit Breaker Plunge Protection Team Early Crashes Dutch Tulip Bulb Market Bubble Black Friday CURRENT ARTICLE Bank Panic of 1907 Crash of 1929 Stock Market Crash of 1929 What Caused the Stock Market Crash of 1929 Black Tuesday Black Thursday Crash of 1987 Stock Market Crash of 1987 Black Monday What Caused Black Monday: The Stock Market Crash of 1987 The Great Recession and Beyond The 2007-2008 Financial Crisis in Review The Fall of the Market in the Fall of 2008 Components of the 2008 Bubble Financial Regulations: Glass-Steagall to Dodd-Frank Consequences of the Glass-Steagall Act Repeal Lessons from the 2008 Financial Crisis Major Players in the 2008 Financial Crisis: Where Are They Now? Too Big to Fail Banks: Where Are They Now? The Black Friday Stock Market Crash Black Friday was a stock market catastrophe that took place on Sept. 24, 1869. On that day, after a period of rampant speculation, the price of gold plummeted, and the markets crashed. It can also refer to a shopping holiday in the U.S. following Thanksgiving. It was sparked by a ring of speculators, led by Jay Gould and James Fisk, who attempted to corner the gold market. In early September, they bought as much bullion as they could get their hands on, causing the price of gold to skyrocket. They also enlisted the help of Abel Corbin, the brother-in-law of President Ulysses S. Grant. They wanted him to persuade the president to limit the metal's availability, which would drive its price even higher. But their attempt to use the White House to manipulate the supply failed. When Grant learned what was happening, he ordered the U.S. Treasury to sell gold instead. The government unloaded $4 million worth, and on Friday, Sept. 24, 1869, the price of gold fell from $160 to $130 per ounce. The gold market collapsed, causing the stock market to plummet more than 20% in the next week, ruining many investors. The day became known in financial history as Black Friday. This stock market crash was the origin of referring to stock market crashes as "black" days. Other examples include Black Tuesday, Oct. 29, 1929, when the market fell precipitously, signaling the start of the Great Depression, and Black Monday, Oct. 19, 1987, when the Dow Jones Industrial Average (DJIA) plummeted more than 22%, the largest one-day drop in stock market history. Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace. Part of the Series Guide to Stock Market Crashes Understanding Stock Market Crashes and Their Impact What Happens in a Crash October: The Month of Market Crashes? How Do Investors Lose Money When the Stock Market Crashes? Timeline of U.S. Stock Market Crashes October Effect Financial Crisis Circuit Breaker Plunge Protection Team Early Crashes Dutch Tulip Bulb Market Bubble Black Friday CURRENT ARTICLE Bank Panic of 1907 Crash of 1929 Stock Market Crash of 1929 What Caused the Stock Market Crash of 1929 Black Tuesday Black Thursday Crash of 1987 Stock Market Crash of 1987 Black Monday What Caused Black Monday: The Stock Market Crash of 1987 The Great Recession and Beyond The 2007-2008 Financial Crisis in Review The Fall of the Market in the Fall of 2008 Components of the 2008 Bubble Financial Regulations: Glass-Steagall to Dodd-Frank Consequences of the Glass-Steagall Act Repeal Lessons from the 2008 Financial Crisis Major Players in the 2008 Financial Crisis: Where Are They Now? Too Big to Fail Banks: Where Are They Now? Read more Investing Markets Partner Links Take the Next Step to Invest Advertiser Disclosure × The offers that appear in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.