Nasdaq · June 29, 2006
The day the market read the end of rate rises
+2.96%
single-day change vs previous close
Part of a longer stretch
Three months when inflation looked frightening
near the end of it · 2006-04-19 → 2006-07-21, -14.78% over the whole period
What happened that day?
- The Nasdaq rose 2.96% on the day
- The Fed raised again, but the wording of its statement was softer than before. The market read it as a signal that it would stop soon
- Shares rose on a rate rise because what matters is the direction ahead, not the step itself
- This did prove to be the last one, ending two years of increases
- Merely knowing the price of money would not rise further sent buyers back into risk, and that ran into the autumn of the next 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.