Nasdaq · October 15, 2002
The day bank results beat the fear
+5.07%
single-day change vs previous close
Part of a longer stretch
The first seven weeks off the bottom
early in it · 2002-10-09 → 2002-11-27, +33.55% over the whole period
What happened that day?
- The Nasdaq rose 5.07% on the day, four days after the bottom
- Large US banks reported third-quarter results that came in better than the market had feared
- The fear was that a chain of corporate defaults would trap the banks. Results holding up meant the chain had not arrived yet
- This mattered for technology too. When credit tightens, capital spending is cut first, and orders for technology products vanish with it
- In this period the market rose less on finding good news than on confirming that the bad thing had not happened
Sources
Every figure on this page is recomputed from the original daily closing prices and checked against them at build time. The account of what happened is written from the sources listed above.