Nasdaq · January 4, 2019
The day the Fed said it would be patient
+4.26%
single-day change vs previous close
Part of a longer stretch
The Nasdaq's Fed-pivot rebound
early in it · 2018-12-24 → 2019-04-23, +31.13% over the whole period
What happened that day?
- The Nasdaq rose 4.26% on the day
- The Fed chair said the bank would be patient on rate policy, read as meaning it could reverse if needed
- 24 December had been the bottom of the decline, and this remark sealed the rebound
- US jobs data released the same day was also strong. A sound economy with no more rate rises is the combination markets like best
- The turn mattered because the 2018 fall had been about rates, not earnings. Remove the cause and the price comes back
- The Fed did go on to cut three times in the second half of that 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.