WhyItDropped

Nasdaq · May 9, 2022

The spring borrowed money unwound

-4.29%

single-day change vs previous close

Part of a longer stretch

The 2021–22 tech bear market

midway through · 2021-11-19 → 2022-12-28, -36.40% over the whole period

What happened that day?

  • The Nasdaq fell 4.29% on the day
  • The US ten-year yield passed three percent, its highest in two years
  • Rising rates mark down shares priced on distant future profits first, and the less profit a company made, the further it fell
  • Crypto markets were breaking at the same time. A stablecoin failed to hold its value and collapsed that week
  • It was a stretch in which everything bought with cheap borrowed money was unwound at once. Asset classes fell together regardless of type
  • This phase bottomed at the end of that December, and recovery began in 2023

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.