Nasdaq · January 5, 2022
Undone by a set of minutes
-3.34%
single-day change vs previous close
Part of a longer stretch
The 2021–22 tech bear market
early in it · 2021-11-19 → 2022-12-28, -36.40% over the whole period
What happened that day?
- On 5 January 2022 the Nasdaq fell 3.34%
- That afternoon the Fed released the minutes of its December meeting, and they were harder than expected
- Not only would rates rise faster — the bonds the Fed had bought would start being run down as well
- Running those down withdraws money from the system. That money was what had been lifting prices
- Technology, whose profits sit far in the future, fell hardest, because those valuations are divided by the interest rate
- This single day previewed the character of the whole of 2022
- In this stretch the index was 23.29% 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.