WhyItDropped

Nasdaq · October 7, 2022

The year good news was bad news

-3.80%

single-day change vs previous close

Part of a longer stretch

The 2021–22 tech bear market

near the end of it · 2021-11-19 → 2022-12-28, -36.40% over the whole period

What happened that day?

  • On 7 October 2022 the Nasdaq fell 3.8%
  • The September jobs report had come in stronger than expected
  • A rally three days in the making was erased in a single session
  • The market of 2022 read economic data upside down. Strong hiring meant higher rates, which meant lower share prices
  • That is not the normal relationship. Usually a strong economy lifts shares. It inverts only when inflation is the binding problem
  • The relationship returned to normal the following year, as inflation began coming down
  • In this stretch the index was 22.2% 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.