WhyItDropped

Nasdaq · August 15, 2006

Confirmation that inflation had turned

+2.22%

single-day change vs previous close

Part of a longer stretch

Fifteen months that ran right up to the crisis

early in it · 2006-07-21 → 2007-10-31, +41.51% over the whole period

What happened that day?

  • The Nasdaq rose 2.22% on the day
  • July inflation came in below expectations. It was read as proof that the Fed's decision to stop had been right
  • The bottom of this phase had come the month before, and the advance settled in from here
  • What the market saw in this period was inflation falling without the economy breaking
  • The run continued into October of the next year, though its final four months came after the financial crisis had already begun

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.