Nasdaq · November 27, 2002
The first seven weeks off the bottom
+33.55%
trough back to the old high
35 trading days · 2002-10-09 → 2002-11-27
What happened that day?
- From the low on 9 October 2002 to 27 November, the Nasdaq rose 33.55% over 35 trading days
- It was the first large bounce after two and a half years of falling since the dot-com bubble burst
- What had weighted the market all summer was not prices but the books. Large telecom and energy firms were caught inflating results, and the numbers themselves stopped being trusted
- A law passed that summer made executives personally answerable for the accounts, and the distrust eased a little
- In early November the Fed cut rates by half a point at once, which is not a common size
- Still, this was not the start of the recovery but the first bounce in a long bottoming. It gave way again four months 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.