average annual dow jones return daily
From 1920 to 1929, the Dow averaged about 8.77% annually. However, when you exclude 1920 and 1929 (two negative years), the average annual return rises to 19.54%. This incredible surge in stock prices was partly due to rampant speculation, which led to a stock bubble that eventually burst.
Stock market historical returns is generally considered Dow Jones Index (Djia) average yealy returns.Djia average yearly return was 7.7539% without adjusting dividends and inflation from 1921 t0 2016. Following table shows DJIA yearly return or stock market historical returns from 1921 to present.