Which 1973–1974 event ended with the Dow Jones Industrial Average losing nearly half its value?

The 1973–1974 event that ended with the Dow Jones Industrial Average losing nearly half its value was the 1973–1974 stock market crash.

The decline began after the Dow reached a record closing high in January 1973. Investors then faced an extended period of inflation, economic weakness, political turmoil, and rising energy costs. The collapse of the Bretton Woods monetary system had also changed the international financial environment. The 1973 oil crisis, which followed an Arab oil embargo in October, intensified inflation and recession fears.

The Dow reached its low on December 6, 1974, closing at 577.60. From its January 1973 high, the index lost about 45%, making the episode one of the most severe U.S. bear markets since the Great Depression. The broader economic period became associated with “stagflation,” combining weak growth with high inflation.

The crash is sometimes confused with the 1969–1970 decline, but the 1973–1974 episode was longer and substantially deeper. It also occurred before modern electronic trading and today’s common circuit-breaker system.