S&P 500 · January 19, 1971
Back from the 1970 credit crunch
+35.32%
trough back to the old high
165 trading days · 1970-05-26 → 1971-01-19
this undid the slide that began 1970-01-05
What happened that day?
- From the 26 May 1970 low to 19 January 1971 the S&P 500 rose 35.32% — 165 trading days
- It undid the credit-crunch decline that began at the start of 1970
- After the big railroad bankruptcy the Fed sharply increased the supply of funds and credit started moving again
- The pace of price rises eased as well, giving the Fed room to cut rates
- The government also turned toward stimulus, which added to expectations
- The old high returned on 19 January 1971 — though inflation was postponed rather than solved, and returned far worse a few years later
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.