The Dow Jones Industrial Average fell about 89% from its 1929 peak to its 1932 trough during the Wall Street Crash. This remains one of the deepest declines in the index’s history.
The Dow reached 381.17 on September 3, 1929, after a long speculative rise. Following the October panic, prices continued falling through bank failures, business contraction, deflation, and severe unemployment. The index finally bottomed at 41.22 on July 8, 1932.
The arithmetic is based on the peak and trough levels: the loss from 381.17 to 41.22 was approximately 89%. The market did not regain its September 1929 closing high until November 1954, although dividends and changing index composition complicate comparisons with modern investment returns.
A common mistake is to treat the crash as a single week. The dramatic October 1929 sessions were crucial, but the broader bear market lasted nearly three years. Economic causes of the Great Depression were broader than stock prices alone and included monetary, banking, trade, and policy failures.