The 1973–1974 bear market followed the 1973 oil crisis and left the Dow Jones Industrial Average down about 45% from its January 1973 peak.
The downturn unfolded amid high inflation, slowing economic growth, geopolitical tension, and the oil embargo imposed by Arab members of OPEC after the October 1973 Yom Kippur War. Energy prices rose sharply, adding pressure to consumers, companies, and industrial economies.
The Dow reached its low on 6 December 1974. The decline was part of a broader period of “stagflation,” in which weak growth occurred alongside persistent inflation. It therefore differed from crashes driven mainly by speculative technology valuations or banking failures.
The event is sometimes described simply as the 1973 crash, but the market decline extended through 1974. It also occurred during the aftermath of the Watergate scandal and President Richard Nixon’s resignation, adding to political uncertainty.