Nasdaq · April 9, 2009
The day a bank pre-announced a profit
+3.89%
single-day change vs previous close
Part of a longer stretch
Thirteen months that doubled off the bottom
early in it · 2009-03-09 → 2010-04-23, +99.44% over the whole period
What happened that day?
- The Nasdaq rose 3.89% on the day
- A large US bank said in advance that its first-quarter results would come in far above expectations
- The timing was unusual. Firms normally wait for the reporting date; this one put the good number out early
- What the market wanted to know in this period was not whether banks could earn but whether they would survive. A profit answered that
- With rates near zero, banks could borrow cheaply and lend dearly. That is the structure that produced the results
- The Nasdaq kept rising through the rest of April from here
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.