Historical Crises and the Stock Market



 
 
 
% Gain (Loss) in Dow Jones Industrial Avg.
Event
Reaction Dates
During Crisis
22 Days* Later
63 Days* Later
WWII - Fall of France
5/9/40-6/22/40
17.1%
-0.5%
8.4%
WWII - Pearl Harbor
5/6/41-12/10/41
-6.5
3.8
-2.9
Korean War
6/23/50-7/13/50
-12
9.1
15.3
Eisenhower Heart Attack
9/23/55-9/26/55
-6.5
0
6.6
JFK Assassination
11/21/63-11/22/63
-2.9
7.2
12.4
U.S. Bombs Cambodia
4/29/70-5/26/70
-14.4
9.9
20.3
Kent State Shootings
5/4/70-5/14/70
-4.2
0.4
3.8
Nixon Resign
8/9/74-8/29/74
-15.5
-7.9
-5.7
USSR Invades Afghanistan
12/24/79-1/3/80
-2.2
6.7
-4
U.S. Invades Grenada
10/24/83-11/7/83
-2.7
3.9
-2.8
U.S. Bombs Libya
4/15/86-4/21/86
2.6
-4.3
-4.1
Stock Market Crash of 87
10/2/87-10/19/87
-34.2
11.5
11.4
Invasion of Panama
12/15/89-12/20/89
-1.9
-2.7
0.3
Persian Gulf War
12/24/90-1/16/91
-4.3
17
19.8
First WTC Bombing
2/26/93-2/27/93
-0.5
2.4
5.1
Orange County Bond Crisis 
10/11/94-12/20/94
-2.8
2.7
8.4
Oklahoma City Bombing
4/19/95-4/20/95
0.6
3.9
9.7
Asian Stock Market Crisis
10/7/97-10/27/97
-12.4
8.8
10.5
U.S. Embassy Bombings 
8/7/98-8/10/98
-0.3
-11.2
4.7
Terrorist Attacks on WTC
9/11/01-9/18/01
-7.3
2.9
13.1

 
 

*References are to market days after the event.

Source: Ned Davis Research, Inc. and Marketwatch.com


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