WhyItDropped

S&P 500 · January 21, 2009

January, waiting for a bank plan

+4.35%

single-day change vs previous close

Part of a longer stretch

The Global Financial Crisis bear market

near the end of it · 2007-10-09 → 2009-03-09, -56.78% over the whole period

What happened that day?

  • On 21 January 2009 the S&P 500 rose 4.35%
  • A new president had been inaugurated the day before, and a plan to deal with the banks was expected soon
  • Bank shares had collapsed the previous day and taken the index down hard, so the retrace was large
  • Talk of nationalising the banks kept circulating — the worst case for shareholders
  • Hope and fear were alternating on a daily basis
  • No single trigger can be pinned to this day
  • In this stretch the index was 44.24% below its peak

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.