WhyItDropped

Nasdaq · March 9, 2001

Recession arrives

-5.35%

single-day change vs previous close

Part of a longer stretch

Nine months down without a rest

near the end of it · 2000-07-17 → 2001-04-04, -61.66% over the whole period

What happened that day?

  • On 9 March 2001 the Nasdaq fell 5.35% in a single day
  • The dot-com bust was a year old and now the real economy was deteriorating too
  • Employment data came in worse than expected and the slide into recession became visible
  • Tech profit warnings kept coming, confirming in numbers that orders had stopped
  • The US body that dates business cycles later fixed March of this year as the start of the recession
  • The Nasdaq's low came 18 months later, in October 2002

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.