Major Stock Market Crashes in US History: From the Great Depression to COVID-19

The Great Depression (1929)

• 📉 The Wall Street crash of October 1929 marked the beginning of the worst financial crisis of the 20th century, leading to a decade-long depression.
• ⚠️ Characterized by mass poverty, business collapses, and a 25% unemployment rate by 1933, the crisis was addressed by President Franklin Delano Roosevelt's economic policies.

OPEC Oil Embargo and 1970s Crash (1973-1974)

• ⛽ In retaliation for US support of Israel, OPEC imposed an oil embargo, causing severe shortages, high inflation, and unemployment.
• 📊 The Dow Jones Industrial Average lost over 45% of its value between 1973 and the end of 1974.

Black Monday (1987)

• 📈 On October 19th, 1987, global markets crashed, with the Dow dropping over 22.6% in a single day, the largest percentage decline in stock market history.
• 💻 Potential causes cited include overvalued stocks, trade deficits, and the exacerbating effect of automated computer trading.

Dot-Com Bubble Burst (2000-2002)

• 🌐 Speculation in internet and technology stocks created a bubble that peaked in March 2000.
• 💥 The NASDAQ composite index, which had grown 800% between 1995 and 2000, lost 78% of its value by 2002 as many internet companies proved to have unsustainable business models.

Global Financial Crisis (2008)

• 🏠 Dubbed the Great Recession, this crisis was the most severe economic downturn since 1929, driven by predatory lending and the collapse of the US housing bubble.
• 📉 Approximately 8.7 million jobs were lost, and the Dow Jones Industrial Average fell by 53% between October 2007 and March 2009.

COVID-19 Pandemic Crash (2020)

• 🦠 The COVID-19 pandemic led to widespread business shutdowns, impacting labor, trade, and markets.
• 📉 Major stock indexes like the Dow and S&P 500 dropped up to 30% in February and March 2020, with most advanced economies falling into recession.