Nasdaq · June 16, 1999
One line about raising rates gently
+4.27%
single-day change vs previous close
What happened that day?
- On 16 June 1999 the Nasdaq rose 4.27%
- The Fed chair had explained the direction of policy to Congress that day
- The substance: if rates went up, they would not go up hard or repeatedly
- Until then the market had been held down by the fear of a long series of hikes. That fear lifted
- In a market where a lot of stock is bought with borrowed money, the direction of rates matters more than usual
- The Fed did raise three times that year, but gently
- The pullback before it had been 10.22% from the 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.