WhyItDropped

Nasdaq · October 13, 2000

An oversold bounce

+7.87%

single-day change vs previous close

Part of a longer stretch

Nine months down without a rest

midway through · 2000-07-17 → 2001-04-04, -61.66% over the whole period

What happened that day?

  • On 13 October 2000 the Nasdaq rose 7.87% in a single day
  • October had been brutal, with profit warnings arriving in a stream
  • That day some large tech companies reported numbers that were not as bad as feared, and relief buying came in
  • After a big fall, news that is merely less bad is enough to produce a violent bounce
  • The direction had not changed, though. More warnings days later and the decline resumed
  • The Nasdaq had several days like this through the bust, and almost none of them were the bottom

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.