S&P 500 · September 18, 2007
The first cut of the crisis
+2.92%
single-day change vs previous close
What happened that day?
- On 18 September 2007 the S&P 500 rose 2.92%
- The Fed cut rates that day — its first cut in four years, and twice as large as the market expected
- Since the credit crunch began in August, banks had stopped lending to each other
- A larger cut also meant the Fed thought the situation was serious, but the market read it as a promise of rescue
- The index did go on to set a record high a month later. That was the last high of the cycle
- Over the following eighteen months the S&P 500 halved
- In this stretch it was 11.58% 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.