S&P 500 · August 11, 2010
The day the Fed admitted the worry
-2.82%
single-day change vs previous close
Part of a longer stretch
The rise the second round of QE bought
early in it · 2010-07-02 → 2011-04-29, +33.35% over the whole period
What happened that day?
- On 11 August 2010 the S&P 500 fell 2.82%
- The day before, the Fed had said the recovery had slowed and that it would reinvest maturing bonds
- That means keeping easing in place, which should be good news. The market read it the other way
- A central bank saying it is worried means there is something to worry about
- Chinese data also slowed that day and European bank worries returned
- The Fed began its second round of quantitative easing three months later
- In this stretch the index was 15.99% 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.