WhyItDropped

Nasdaq · June 24, 2022

A bounce inside the bear market

+3.34%

single-day change vs previous close

Part of a longer stretch

The 2021–22 tech bear market

midway through · 2021-11-19 → 2022-12-28, -36.40% over the whole period

What happened that day?

  • On 24 June 2022 the Nasdaq rose 3.34%
  • The bounce that began at the mid-June low gathered strength here and ran into mid-August
  • That summer rally leaned on the belief that inflation had peaked and the Fed would soon stop
  • Bounces like this appear repeatedly inside bear markets. They are larger, not smaller, in a downtrend
  • The reason is that the sellers are already out. Buying back alone moves the price a long way
  • This one ended with a single speech by the Fed chair in late August
  • In this stretch the index was 29.4% 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.