What 1973–1974 event describes the prolonged collapse in stock prices across major markets?

The prolonged collapse in stock prices across major markets in 1973 and 1974 is called the 1973–1974 stock market crash.

The decline unfolded during a period of severe economic and geopolitical stress. The 1973 oil crisis sharply increased energy costs after the Yom Kippur War, while inflation, recession, and political uncertainty weakened investor confidence. The Watergate scandal also affected sentiment in the United States.

In the United States, the Dow Jones Industrial Average fell substantially from its January 1973 high to its December 1974 low. Many other markets also suffered large losses, making the episode an international bear market rather than an isolated exchange disturbance.

It is sometimes described as part of the broader “stagflation” crisis of the 1970s. Stagflation means the combination of weak economic growth and high inflation, conditions that made traditional policy responses especially difficult.