WhyItDropped

Nasdaq · October 19, 2007

A day when earnings disappointed together

-2.65%

single-day change vs previous close

Part of a longer stretch

Fifteen months that ran right up to the crisis

near the end of it · 2006-07-21 → 2007-10-31, +41.51% over the whole period

What happened that day?

  • The Nasdaq fell 2.65% on the day
  • Third-quarter bank results showed large losses on home loans for the first time. This is when the problem started appearing as numbers on the books
  • A large manufacturer also reported weak results the same day. When housing turns, construction equipment and materials feel it first
  • It happened to be the twentieth anniversary of Black Monday in 1987. The date made the mood more jumpy
  • This phase's high came eight days later, on 31 October. In practice the crisis period begins here

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.