Major Dow Jones Crashes After 1900

Introduction

The Dow Jones Industrial Average (DJIA) has experienced several significant crashes throughout its history. These events are critical in understanding the economic and market dynamics over the last century. Here’s a detailed overview of the most notable Dow Jones crashes after 1900.

1. The Panic of 1901

• Date: 1901
• Description: Triggered by a fight for control over the Northern Pacific Railway.
• Impact: Significant drop in stock prices.

2. The Panic of 1907

• Date: 1907
• Description: Banking panic and severe liquidity crisis.
• Impact: DJIA dropped nearly 50% from its peak in 1906​:citation[oaicite:23]{index=23}​.

3. The Wall Street Crash of 1929

• Date: October 29, 1929
• Description: Black Tuesday marked the beginning of the Great Depression. Over-speculation and margin buying were key contributors.
• Impact: DJIA lost nearly 90% of its value from September 1929 to 1932​:citation[oaicite:22]{index=22}​​:citation[oaicite:21]{index=21}​.

4. Recession of 1937-1938

• Date: 1937-1938
• Description: Economic downturn due to tightening fiscal policies.
• Impact: DJIA dropped nearly 50% from August 1937 to March 1938​:citation[oaicite:20]{index=20}​.

5. Flash Crash of 1962

• Date: May 28, 1962
• Description: Known as the "Kennedy Slide."
• Impact: DJIA fell 5.7% in one day, broader decline of about 27%​:citation[oaicite:19]{index=19}​.

6. Oil Crisis of 1973-1974

• Date: 1973-1974
• Description: Triggered by the OPEC oil embargo.
• Impact: DJIA dropped about 45% from January 1973 to December 1974​:citation[oaicite:18]{index=18}​​:citation[oaicite:17]{index=17}​.

7. Black Monday (1987)

• Date: October 19, 1987
• Description: DJIA fell 22.6% in one day.
• Impact: Largest one-day percentage loss in DJIA history​:citation[oaicite:16]{index=16}​​:citation[oaicite:15]{index=15}​.

8. Friday the 13th Mini-Crash (1989)

• Date: October 13, 1989
• Description: Triggered by a failed leveraged buyout deal for UAL Corporation.
• Impact: DJIA fell 6.91%​:citation[oaicite:14]{index=14}​.

9. Early 1990s Recession

• Date: 1990-1991
• Description: Triggered by the Gulf War and savings-and-loan crisis.
• Impact: Significant downturn but not a single-day crash​:citation[oaicite:13]{index=13}​.

10. Asian Financial Crisis (1997)

• Date: October 27, 1997
• Description: Caused by economic crisis in Asia.
• Impact: DJIA fell 7.18%​:citation[oaicite:12]{index=12}​.

11. Dot-Com Bubble (2000-2002)

• Date: 2000-2002
• Description: Burst of the dot-com bubble due to overvaluation of internet companies.
• Impact: DJIA dropped nearly 40% from January 2000 to October 2002​:citation[oaicite:11]{index=11}​​:citation[oaicite:10]{index=10}​.

12. September 11 Attacks (2001)

• Date: September 11, 2001
• Description: Terrorist attacks causing global market panic.
• Impact: DJIA fell 7.1% on the first trading day after the attacks​:citation[oaicite:9]{index=9}​.

13. Financial Crisis of 2007-2008

• Date: 2007-2008
• Description: Triggered by the housing bubble burst and banking crisis.
• Impact: DJIA lost more than 50% from October 2007 to March 2009​:citation[oaicite:8]{index=8}​​:citation[oaicite:7]{index=7}​.

14. Flash Crash of 2010

• Date: May 6, 2010
• Description: DJIA fell over 1,000 points within minutes due to automated trading systems.
• Impact: Highlighted market vulnerabilities​:citation[oaicite:6]{index=6}​.

15. European Debt Crisis (2011)

• Date: August 8, 2011
• Description: Caused by the U.S. credit rating downgrade and European debt crisis.
• Impact: DJIA dropped over 600 points in one day​:citation[oaicite:5]{index=5}​​:citation[oaicite:4]{index=4}​.

16. 2015-2016 Stock Market Selloff

• Date: 2015-2016
• Description: Global sell-off due to economic turmoil in China and other factors.
• Impact: DJIA fell 530 points on August 21, 2015​:citation[oaicite:3]{index=3}​.

17. Brexit (2016)

• Date: June 24, 2016
• Description: UK’s decision to leave the EU.
• Impact: DJIA dropped 610 points the day after the Brexit vote​:citation[oaicite:2]{index=2}​.

18. 2020 Coronavirus Crash

• Date: March 2020
• Description: Panic selling due to the COVID-19 pandemic.
• Impact: DJIA lost 37% from February to March 2020, with multiple trading halts​:citation[oaicite:1]{index=1}​​:citation[oaicite:0]{index=0}​.

For more detailed information, you can visit Wikipedia's list.

Overall

These crashes highlight the market's vulnerability to various economic, political, and social factors. Understanding these events is crucial for investors and policymakers to navigate future market uncertainties.