Nasdaq · June 5, 2006
The day a Fed chair's line moved the market
-2.24%
single-day change vs previous close
Part of a longer stretch
Three months when inflation looked frightening
midway through · 2006-04-19 → 2006-07-21, -14.78% over the whole period
What happened that day?
- The Nasdaq fell 2.24% on the day
- The Fed chair said the pace of price rises was hard to accept. It was read as intent to raise rates further
- He had been criticised days earlier for letting the market run ahead of him. This remark looked like an answer to that criticism
- What a central bank head says is itself policy. Prices move before any rate is actually changed
- What fell most in this period were the emerging markets and technology shares that had run up hardest
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.