Which 1973–1974 event describes the major bear market in U.S. and British shares?

The major bear market in U.S. and British shares from 1973 to 1974 was the 1973–1974 stock market crash.

The downturn followed the collapse of the postwar economic expansion and was intensified by inflation, monetary tightening, political turmoil, and the 1973 oil crisis. In the United States, the Dow Jones Industrial Average fell from its January 1973 peak to a low in December 1974, losing roughly 45% of its value.

The crisis also affected Britain and other major markets. In the United Kingdom, inflation and industrial unrest added to economic pressure. The period is associated with stagflation: weak growth combined with rapidly rising prices, a combination that challenged the economic policies then in use.

The crash is sometimes attributed only to the oil embargo, but the market decline had several causes and began before the embargo’s full effects. The recession, energy shock, and inflation reinforced one another. The episode remains a key example of how financial markets can suffer when economic growth, monetary conditions, and investor confidence deteriorate together.