Nasdaq · July 21, 2006
Three months when inflation looked frightening
-14.78%
peak-to-trough, the whole slide
65 trading days · 2006-04-19 → 2006-07-21
still below that peak today
What happened that day?
- From the high on 19 April 2006 to the low on 21 July, the Nasdaq fell 14.78% over 65 trading days
- Spring inflation readings came in above expectations, tilting the market toward a Fed that would keep raising for longer
- A new Fed chair had just taken office and the market could not yet read him. That uncertainty deepened the fall
- Armed conflict in the Middle East that summer pushed oil to a record high
- Emerging markets, which had run up hard, were shaken badly in this period, and the tremor carried into US technology shares
- In the end the Fed stopped raising that summer, and the correction ended there
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.