WhyItDropped

Nasdaq · October 10, 2014

The worry that Europe was cooling

-2.33%

single-day change vs previous close

Part of a longer stretch

The climb back to the level of 2000

near the end of it · 2012-11-15 → 2015-04-23, +78.22% over the whole period

What happened that day?

  • The Nasdaq fell 2.33% on the day
  • German export and industrial production figures came in weak one after another, meaning Europe's sturdiest economy was wobbling
  • Oil was falling fast at the same time. Here the fall was read as a signal of absent demand
  • The Fed was due to end its bond buying entirely later that month. Coinciding with the end of support deepened the unease
  • This correction bottomed three days later and recovered quickly, after a Fed official said there was no hurry while inflation was low
  • Europe eventually launched large-scale bond buying of its own the following year

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.