The most significant single-day percentage drop in the Dow Jones Industrial Average's history occurred on December 12, 1914.
What was the worst stock drop in history?
The worst single-day stock drop, when measured by the largest percentage loss in the Dow Jones Industrial Average (DJIA), took place on December 12, 1914. On this historic day, the index experienced a dramatic fall, marking it as a precedent for market volatility.
The Record-Setting Plunge of 1914
On December 12, 1914, the Dow Jones Industrial Average plummeted from 71.42 points to 54.00 points. This represented an astonishing loss of 24.39% in a single trading session. This event is widely recognized in financial history as the largest percentage decrease the Dow has ever suffered in one day.
Here's a breakdown of the key figures:
| Date | Index | Previous Day's Close | Closing Value | Percentage Drop |
|---|---|---|---|---|
| December 12, 1914 | Dow Jones Industrial Average | 71.42 | 54.00 | −24.39% |
Why This Drop Stands Out
While other market crashes like Black Monday in 1987 saw larger point drops, the 1914 event holds the record for the biggest percentage decline. This distinction is crucial because percentage drops provide a relative measure of loss, indicating how much of the index's total value was wiped out. Historical financial records, including those maintained by the Dow Jones company itself, consistently highlight December 12, 1914, as the day with the most substantial percentage loss in the index's long history.
