WhyItDropped

Nasdaq · March 12, 2001

One Year Into the Dot-com Bust

-6.30%

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?

  • 12 March 2001 — Nasdaq Composite fell 6.3%, a full year after the March 2000 peak
  • Defining feature of this phase: the decline didn't happen at once
  • Rallies and drops alternated, and 'this is the bottom' proved wrong repeatedly
  • Meanwhile internet companies that had listed without profits were delisted or acquired one by one
  • By early 2001 the US economy really was slowing. As corporations cut tech spending, telecom equipment and semiconductor earnings collapsed with them
  • The phase in which a burst bubble moved into the real economy
  • Fell 48.79% from peak — and it wasn't over yet

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.