Nasdaq · April 25, 2000
The day chip results held the line
+6.57%
single-day change vs previous close
Part of a longer stretch
The eleven weeks when the bubble first broke
midway through · 2000-03-10 → 2000-05-23, -37.32% over the whole period
What happened that day?
- The Nasdaq rose 6.57% on the day
- First-quarter results from chip and telecom equipment makers came in strong, read as evidence that April's crash had not been about earnings
- The market's logic then was this — internet companies do not make money, but the firms selling them equipment genuinely do
- The logic held for a while. The catch was that once internet companies could no longer raise money, they stopped buying equipment
- That link broke from the summer of that year. It was not yet visible at this point
- This bounce was part of a recovery that ran into late May
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.