WhyItDropped

S&P 500 · October 13, 2022

The day it rose on bad inflation

+2.60%

single-day change vs previous close

Part of a longer stretch

The peak-inflation rally

early in it · 2022-10-12 → 2024-01-19, +35.30% over the whole period

What happened that day?

  • The S&P 500 rose 2.6% on the day. The previous session, 12 October, was the bottom of that year's bear market
  • The inflation reading that morning was worse than expected, and the index fell sharply at the open
  • Then the direction reversed completely during the session and it closed well up
  • A reversal like that happens not because of news but because everyone who wanted to sell has sold. Not falling further on bad news is read as a bottom signal
  • The previous day had indeed been the bottom, and the recovery that began here ran to January 2024
  • Days that rise on bad data are rare, but such days are often the turning point of a phase

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.