WhyItDropped

Nasdaq · May 23, 2000

Where the Rebound Ended

-5.93%

single-day change vs previous close

Part of a longer stretch

The summer that still believed

early in it · 2000-05-23 → 2000-07-17, +35.08% over the whole period

What happened that day?

  • 23 May 2000 — Nasdaq Composite fell 5.93%, several weeks into a rebound from April's collapse
  • Defining feature of this period: rebounds kept failing
  • Bargain hunters would lift prices for a few days, then an earnings warning or funding story sent them back down
  • The Fed's large rate increase that May added pressure
  • Higher rates reduce the present value of profits expected far out — hitting hardest the companies with no profits yet, only growth expectations
  • Fell 37.32% from peak

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.