Which 1973–1974 event cut the Dow Jones Industrial Average by about 45%?

The 1973–1974 stock market crash cut the Dow Jones Industrial Average by about 45%.

The decline began amid rising inflation, slowing economic growth, and political uncertainty connected with the Watergate scandal. The 1973 oil crisis then intensified pressure on businesses and consumers after oil prices rose sharply following the Yom Kippur War and an Arab oil embargo.

The Dow peaked in January 1973 and reached its low in December 1974. The period is often treated as one continuous bear market, although the market moved through many separate rallies and sell-offs.

This crash is distinct from the 1970s oil crisis itself: the oil shock was an important cause of economic stress, while the stock-market crash describes the fall in equity prices. It also occurred decades before the 2008 financial crisis.