The Dow Jones Industrial Average fell approximately 45% during the 1973–1974 stock market crash.
The decline began in January 1973 and reached its low in December 1974. The crash unfolded during a period of severe economic and political stress, including the 1973 oil crisis, high inflation, recession, and the Watergate scandal in the United States.
The oil crisis began after Arab members of OAPEC announced an oil embargo in October 1973. Oil prices rose dramatically, increasing costs for businesses and consumers. At the same time, inflation and slowing economic growth created the difficult combination later called stagflation.
The percentage depends slightly on the precise index dates used, which is why this episode is usually described as a fall of about 45% rather than with a single decimal figure. The crash is sometimes confused with the 1970 bear market, but the 1973–1974 decline was a separate and deeper episode.