The 1973–1974 stock-market crash cut the Dow Jones Industrial Average by about 45% between 1973 and 1974.
The bear market began after the Dow reached a closing high in January 1973 and ended when it reached a low in December 1974. It unfolded amid the 1973 oil crisis, high inflation, recession, political uncertainty, and the collapse of the Bretton Woods fixed-exchange-rate system. These forces damaged corporate expectations and investor confidence.
The episode affected markets beyond the United States and became one of the most severe postwar bear markets. It is frequently discussed alongside the broader economic “stagflation” of the 1970s, when weak growth and rising prices appeared together.
The 45% figure is a rounded peak-to-trough Dow decline. It does not mean that every share fell by the same amount or that the loss occurred in one trading session.