Black Tuesday took place on October 29, 1929, was a depression with increasing unemployment (but still under 10%). During the stock market crash of 1929 unemployment peaked at 9 percent, and then drifted downwards until it reached 6.3% in June 1930.

What was the cause of the Stock Market Crash of 1929? The FED’s inflationary policies (increasing the money supply) resulted in a speculative boom which ended in a bust (Stock Market Crash) once the inflation ended.