Which U.S. stock index fell about 46% during the crash of 1920–1921?

The Dow Jones Industrial Average fell about 46% during the U.S. stock-market crash of 1920–1921. This sharp decline occurred during the post–World War I recession and preceded a powerful economic expansion later in the 1920s.

After the war, the United States experienced inflation, a downturn in agricultural prices, labor unrest, and a contraction in economic activity. The Federal Reserve raised interest rates substantially to combat inflation. Tighter credit contributed to falling asset prices and business failures, especially in farming and commodity-producing regions.

The Dow’s decline from its 1919 high to its 1921 low is often overshadowed by the 1929 crash, but the earlier episode was historically important. The Federal Reserve’s policy response helped bring inflation down, while falling prices and wages eventually supported recovery. The recession ended in 1921, and the subsequent decade became known for strong industrial growth and rising stock prices.

The exact percentage can vary slightly depending on whether closing or intraday levels are used. “About 46%” is the commonly cited rounded measure for the Dow’s fall in this episode.