1903 to 1904

U.S. Steel After the 1901 Keene Rally Collapsed

In spring 1901, J.P. Morgan tasked veteran operator James Keene with making a market for the newly formed U.S. Steel Corporation's stock. Backed with real capital, Keene marked the shares up to 55 amid the speculative mania of 1901. The rally didn't last: by 1903, in what became known as the 'undigested-securities panic', U.S. Steel common had collapsed all the way down to 10 — a price that might look like a bottom after such a fall from 55. It wasn't. The stock fell further still, to 8.875, by 1904.

Real price levels from this episode

Keene's markup peak, 1901 55
Where it stood, 1903 — your decision point 10
Where it actually went next, 1904 8.875

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