Nasdaq · May 21, 2001

A bounce in the spring of rate cuts

+4.85%

single-day change vs previous close

Part of a longer stretch

Seven weeks bought by rate cuts

near the end of it · 2001-04-04 → 2001-05-22, +41.19% over the whole period

What happened that day?

The Nasdaq rose 4.85% to close at 2,305.59. No single trigger for the day could be pinned down
The United States began cutting rates as soon as 2001 opened and kept cutting through the spring
Rate cuts lift the shares priced on distant future profits first. Technology names are exactly that
So big up-days came often that year. The direction was still down
This episode fell 45.61% from the January high to the September low, and this bounce sits inside it
When a bubble empties, rate cuts slow the fall without turning it. Prices keep going until they reach the profits

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 put together from the public record; where a specific source was consulted it is listed above.