S&P 500 · May 27, 1970
The day after the 1970 low
+5.02%
single-day change vs previous close
Part of a longer stretch
Back from the 1970 credit crunch
early in it · 1970-05-26 → 1971-01-19, +35.32% over the whole period
What happened that day?
- On 27 May 1970 the S&P 500 rose 5.02% in a single day
- The day before, 26 May, was the low of that year's credit-crunch decline
- Tightening credit to fight inflation had left companies unable to raise short-term funding
- The Fed signalled it would supply ample funds and the funding-squeeze fear cleared
- At a low, most of the selling is already done, so bounces are large
- The old high returned on 19 January 1971
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.