Nasdaq · May 11, 2006
The day inflation started to read as a threat
-2.07%
single-day change vs previous close
Part of a longer stretch
Three months when inflation looked frightening
early in it · 2006-04-19 → 2006-07-21, -14.78% over the whole period
What happened that day?
- The Nasdaq fell 2.07% on the day
- The Fed had raised again the day before and said it would keep watching prices. There was no signal that it would stop here
- Spring inflation readings were coming in above expectations. Higher oil and raw material costs were feeding into the price of goods
- The new Fed chair was three months into the job and the market did not yet know how he judged things. That uncertainty deepened the fall
- A correction lasting more than two months began here, bottoming in late July
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.