Nasdaq · May 8, 2002
A bounce in the final phase
+7.78%
single-day change vs previous close
Part of a longer stretch
Nine months when the books could not be trusted
midway through · 2002-01-04 → 2002-10-09, -45.90% over the whole period
What happened that day?
- On 8 May 2002 the Nasdaq rose 7.78% in a single day
- Two years into the bust, the index was far below its peak
- Forecasts that the tech cycle had bottomed drew bargain hunters in
- After a long fall, even small positive signals produce large moves
- The real problem in this period, though, was accounting fraud. Through the summer, more large companies were exposed
- Once reported earnings could not be trusted the decline continued, and the low came that October
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.