WhyItDropped

S&P 500 · October 27, 2011

The day Greek debt was written down

+3.43%

single-day change vs previous close

Part of a longer stretch

After 'whatever it takes'

early in it · 2011-10-03 → 2013-03-28, +42.75% over the whole period

What happened that day?

  • On 27 October 2011 the S&P 500 rose 3.43%
  • Overnight, a European summit had agreed three things: cut Greek debt by close to half, recapitalise the banks, and enlarge the rescue fund
  • Cutting debt means creditors accept a loss. Europe had avoided that choice until then
  • The market rose because a decision long postponed had finally been made
  • The agreement lacked specifics, though, and things wobbled again within weeks
  • The real turning point came the following July, in a sentence from the central bank's head
  • In this stretch the index was 18.77% below its 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.