The 1973–1974 U.S. bear market reached its low point on December 6, 1974. The closing low marked the end of the principal decline that had battered major American stock indexes for nearly two years.
The downturn developed amid the 1973 oil crisis, high inflation, recession, political uncertainty, and the Watergate scandal. The S&P 500 fell roughly 48% from its January 1973 high to its December 1974 low, making the episode one of the most severe U.S. market declines since the Great Depression.
The date is not the same as the beginning of the crash. The bear market began after the market’s early-1973 peak, while December 6 identifies the eventual trough. Markets can continue to experience volatility after a technical low, so a trough does not mean that economic conditions immediately improve.
The recovery was gradual. Inflation remained a major concern, and the United States experienced a deep recession during the period. The crash is often studied alongside the 1973 oil embargo because energy costs and economic disruption intensified pressure on companies and consumers.