The Dow Jones Industrial Average lost approximately 45% during the 1973–1974 bear market.
The decline began after the Dow reached a high in January 1973 and continued until a low in December 1974. It was one of the most damaging U.S. stock-market downturns since the Great Depression. The broader market suffered as investors faced economic stagnation, inflation and falling corporate confidence.
The crisis unfolded alongside the 1973 oil shock, when oil prices rose sharply after the Yom Kippur War and an Arab oil embargo. The United States and other economies experienced higher energy costs, weaker growth and severe inflation. The Watergate scandal and political uncertainty further undermined confidence.
The approximately 45% figure describes the Dow’s peak-to-trough decline, not a single day’s loss. It is also distinct from the 1970s’ overall inflation-adjusted investment experience, because nominal index performance and real purchasing power measure different things.