The severe 1962 U.S. stock-market decline associated with President Kennedy’s economic policies was called the Kennedy Slide.
The fall lasted from December 1961 into June 1962. The Dow Jones Industrial Average dropped about 26.5% from its peak to its low, making it one of the sharpest U.S. market declines since the 1929 crash.
Investor concern involved slowing economic growth, tighter monetary conditions, the Cold War, and uncertainty surrounding the administration’s approach to business. The government’s antitrust action against the steel industry also contributed to strained relations with corporate leaders, although historians do not identify one simple cause.
The Kennedy Slide is sometimes confused with the 1962 Cuban Missile Crisis. The market decline largely preceded that October crisis. It also differs from the 1987 crash because the 1962 fall unfolded over months rather than in one extraordinary trading session.