A Brief Description of the Timeline of the U.S. Stock Market Crash and Recovery from 1929 to 2023. What will happen in 2024?
- M R H Khan
- Jun 24, 2024
- 2 min read
1929 - Wall Street Crash
The most devastating stock market crash in U.S. history led to the Great Depression. On Oct. 24, 1929, known as Black Thursday, the market was at 299.5 (from 381), a 21% decline.
1937 - Recession of 1937-38
A sharp economic downturn during the Great Depression recovery. Real GDP fell 10%, while unemployment hit 20%. The Roosevelt administration began pursuing expansionary fiscal policies, and the recession ended.
1962 - Kennedy Slide
A stock market downturn during the Kennedy administration was attributed to a combination of factors, including rising interest rates. DJIA fell 5.7%, its second-largest point decline ever at that time
1987 - Black Monday
DJIA lost over $500 billion after dropping 22.6%(fell by 508 points), the largest one-day stock market decline in history was driven by a combination of program trading and market panic.
2000 - Dot-com Bubble
A bubble caused by excessive speculation in Internet and technology stocks, resulting in significant market declines when it burst. The Nasdaq 100 index lost more than half its peak value, closing at 2,470.52 points after its March all-time high of 5,048. DJIA closed at approximately 10,786.85 points, and S&P 500 closed at around 1,320.28 points
The crash wiped out $5 trillion U.S. in technology-firm market value.
2008 - Financial Crisis
A severe worldwide economic crisis triggered by the collapse of the housing bubble and the failure of major financial institutions. Lehman Brothers goes bankrupt under the weight of $619 billion in debt, much of it due to investments in subprime mortgages. Dow Jones closed at 6,926, a drop of more than 50% from its pre-recession high of 14,047. S&P 500 ended at around 903.25 points, and Nasdaq at approximately 1,577.03 points.
2020 - COVID-19 Crash
A major stock market crash caused by the global COVID-19 pandemic led to widespread economic shutdowns and market volatility. In Feb-March, the DJIA lost 37% of its value. In December 2019, the market point was 28,536, March 2020-26,184, May-23,685, July-38,459, December-30,606. DJIA crossed 30,000 for the first time in history.
S&P 500 closed at 3,756.07 points, and Nasdaq closed at 12,888.28 points.
2023 - Market Volatility
Ongoing market fluctuations due to various economic factors, including inflation concerns, geopolitical tensions, and shifts in monetary policy. In January 2023, the market point was 34,086. S&P 500 closed at 4,017.77 points, and Nasdaq closed at 11,584.55 points.
What will happen in 2024?
In January 2024, the market point was 38,156, similar to COVID-19 in July (38,459). In May, it was 33,136. S&P 500 closed at 4,924.97 points, and Nasdaq ended at 15,509.90 points.
Given the ongoing economic recovery post-COVID-19 and the current trend of market fluctuations, it's reasonable to expect moderate growth in the stock market.
Technology and healthcare sectors are expected to continue performing well, driven by innovation and increased demand (AI and ML). Renewable energy might see significant growth as global policies shift towards sustainability.
If inflation is kept under control, it could support continued market expansion.
Resolving ongoing geopolitical tensions could boost investor confidence and drive markets higher.
DJIA points in December 2024 are expected to be between 36,500 to 37,500. S&P 500 is expected to be 5,300 to 5,500 points. Nasdaq is expected to be 18,000 to 19,000 points in a bullish scenario.
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