Richard Nixon's resignation added political uncertainty to the 1973–1974 stock-market crash. Nixon resigned on August 9, 1974, amid the Watergate scandal, while markets were already weakened by inflation, recession, and the oil crisis.
The stock-market decline was not caused by Watergate alone. The 1973 oil shock raised energy costs, consumer prices were accelerating, and economic growth was slowing. Higher inflation and weaker profits made investors less willing to pay high prices for shares.
Political turmoil nevertheless intensified uncertainty about government policy and economic management. Nixon's departure was followed by Gerald Ford's presidency, and Ford later announced a major anti-inflation program known as Whip Inflation Now.
The Dow ultimately reached its bear-market low in December 1974. This connection is sometimes oversimplified into saying that presidential resignation caused the crash. The historical episode was instead a combination of economic shocks and political crisis unfolding over many months.