Market Mayhem: Rumors of German Troop Movements Send Stocks Plummeting

In a move that sent shockwaves through the financial world, rumors of German troop movements on the Polish border contributed to a day of uncertainty on Wall Street. Friday, May 12, 1939, saw stocks open irregularly and then drift down as traders grew disillusioned with the lack of new buying following President Roosevelt’s assertion that he was open to tax revision and improvement in the bituminous coal situation. Despite the President’s statement, the market remained lethargic, with prices drifting uncertainly in quiet trading.